The goal of this paper is to review the development prospects of stock market in Georgia. The change of economic system in Central and Eastern Europe in 1990s resulted in rapid economic growth. This led to the rise of various financial institutions, especially the development of stock markets. The existence of stock markets in the developing countries is associated with the establishment of free market system and democracy. Therefore, developed countries attach significant importance to the development of stock markets in third countries.Influence of internal and external factors on Stock market development in third countries is reviewed in this paper. External factors include the establishment of successful economic models through international financial institutions, financial aid, and sharing of best practices in the field. Internal factors include the impacts of sustainable banking systems, pension funds, and insurance companies on stock market operation in developing countries