Given the changes that have taken place in history and today, through the economies of various countries and the way of life of the population, new regulatory measures and provisions have been set throughout the financial system.The capital market, as part of this system, is one of the most regulated parts of the system. It has been shown that the action of the "invisible hand" regulates and facilitates the trade in securities on the capital market. The supply and demand of securities varies over time and regulatory measures that are constantly updated. Various laws regulate the manner of trading long-term securities, all through the activities of financial institutions or capital market institutions. The aim of this paper is to explain in more detail the legislative framework of the capital market in Croatia throughout history until today but also to emphasize its importance. The financial system will be analyzed, that is the capital market that occupies a special place in the financial market, its institutions that mediate in it, as well as the financial instruments that operate in the market. Our system is defined by 5 laws and is governed by several capital market institutions which will be further explained in more detail.