The goal of this master’s thesis was to analyze the state of the capital market in Croatia and propose appropriate initiatives for the upcoming capital market development strategy that could have a significant positive impact on increasing the activity of retail investors and increasing the number of listed securities by issuers. The proposed initiatives were arrived at based on the analysis of the study for the development of the capital market prepared by the CFA Croatian Association, the OECD study, and strategies for the development of comparable capital markets, namely the capital markets of Slovenia, Romania, the Czech Republic and Poland. Data were collected from secondary sources such as databases and publications of competent regulators of the financial system and regulated markets, as well as scientific papers. Secondary data were also collected from the development strategies of comparable capital markets defined by the competent ministries of finance. The comprehensive analysis resulted in the recognition of key initiatives for the development of the Croatian capital market (such as the introduction of investment accounts with tax benefits), but also pointed to potential limitations in the implementation of initiatives and specificities of the Croatian capital market that keep the activities of retail investors and institutional investors at low levels.