ABSTRACT Uganda Clays Limited (UCL) is an important supplier of building clay products in the housing and construction industry. Its main business is the production and sale of roofing tiles, walling materials such as burnt clay bricks, interlocking and corner blocks, partition blocks, ventilators, suspended floor units, floor tiles, pipes, other building materials and decorative clay products such as grilles, flower pots, vases and other pottery. UCL has improved its market capitalisation and raised enough capital and expanded as a result of listing in the stock exchange. The main purpose of the study was to examine capital markets and the development of business enterprises. The objectives ofthe study were; What are the benefits of UCL as a listed company on the stock exchange in Uganda? What are the factors affecting the operations ofthe stock markets? What is the relationship between Capital Market and the development of business enterprises? The researcher used a cross sectional survey design. Data was both qualitative and quantitative. The researcher used systematic sampling to get the sample size out of the population. In this study, it is recommended that. USE should adopt better methods of improving public awareness in order to reach too many people. USE should also emphasize on building public confidence and trust in order to develop the market. This can be done through continuous public support and participation. USE also proposed more incentives to be given to the companies that are listed on the stock exchange in order to encourage more listings. The regulatory framework appears to be not so competent and so USE proposed that the CMA should revise the current regulatory framework. USE should adopt better education reform by advocating to revise commerce syllabus so that secondary school study should start studying about security exchange right from form one.