One of the phenomenal events of the 21 51 century is the globalized feature of both thernfactor and product market all over the world. This, does not only created opportunity forrnthe developing countries for a relatively easier access for the products and services ofrndeveloped countries, but also helped the developed one's to enjoy the benefit ofrndiversification and exploit the potential cheap labor power, un exploited natural resource,rnand high purchasing power bloated by large population size. Moreover, the globalizationrntrend also made it possible for a relatively easy transfer of technology and above all therntransfer of finance.rnShortage of finance is a major constraint in realization of economic development forrndeveloping countries. They usually rely on foreign borrowing to finance their larger andrnlong term projects. However; this source is the most unreliable and remote. Thus, it isrndesperate move fro developing countries like Ethiopia to search for the alternative meansrnto reap the premiums made available in the global market. The World Bank and IMFrnrecommend to countries to exercise liberalization and deregulations of the economy to bernable to participate and benefit from the global market. Among the most importantrnintermediations recommended for integration in- the global market and mobilize andrnchannel both foreign and local resources to wards the most productive sector is therndevelopment of capital market.rnRecognizing the role played by security market in mobilizing and allocating resourcesrnmore than a dozen of African countries developed a stock market. Ethiopia is not amongrnthis group. This paper focuses on evaluating the need and identifying the availability ofrnthe pre-requisites for stock market development and concludes by recommending thernpossibility of emerging stock market in Ethiopia.