The main objective of stock exchange market is to Organize and regulate financial market wherernsecurities are bought and sold at prices governed by the forces of demand and supply. However,rnit is not established in Ethiopia while establishment brings opportunities and also poses challengesrnto the establisher. This study examined challenges and prospects towards the establishment ofrnstock exchange market in Ethiopia and described the effects by considering institutionalrninfrastructures frameworks, public awareness and trust in share investment, technologicalrninfrastructures and macro-economic levels as independent variables. Both primary and secondaryrnsources of data were used for the study. To attain its objective, the research was conducted onrnshare companies incorporated in Ethiopia, government officials and the share dealers of thesernshare companies. Thus, 90 share companies were selected as a sample from share company managersrnwhile 5 government officials and 5 share company dealers were selected purposively using nonprobabilityrnpurposive sampling method making the total sample size 100 for this study. The resultrnrevealed that legal and regulatory framework, insufficient technological infrastructure, and lowrnlevel of public awareness as a challenge of establish stock market in Ethiopia. Also, the prospectsrninclude the economic growth of the country, the agenda of poverty reduction, privatization effortrnand unexploited resources. Thus, the researcher recommends the government to take realrnpragmatic measures to establish stock market and further reforming in the legal, institutional andrntechnological requirements that are necessary