Abstract : The Bahrain stock market has gone through the following phases in its developmental process to reach the position it has (achieved) today:- 1) The transition period (from 1957 to 1971) 2) Growth and the primary market (from 1971 to 1979) 3) Secondary market growth and creation of the exempted companies (1979 to 1983) 4) Market Crisis (1984) 5) Pre-establishment of Bahrain Stock Exchange (BSE).