--%>
Assignment Help - homework help

Factors considering before investing

Being an investor, what are all factors you would consider before investing within the emerging stock market of developing country?

E

Expert

Verified

An investor in the emerging market stocks required to be concerned with the depth of market and also with the market’s liquidity.  Where, depth of market refers to the opportunities in order to invest within the country.  One measure of depth of the market is concentration ratio of the country’s stock market.  Consequently, concentration ratio is calculated to display the market value of ten largest stocks traded as a fraction of the total market capitalization of all equities traded.  The lower the concentration ratio, the less deep is the market.  This means that, most value is concentrated only in few companies.  While this does not essentially states that the largest stocks in emerging market are not good investments, Though, it suggest that there exist few opportunities for investing in that country and that proper diversification in the country may become difficult.  In accordance with the liquidity, an investor might be wise to examine the market turnover ratio of the country’s stock market. 

   Related Questions in Financial Accounting

  • Q : Creatives and Suites What happens when

    What happens when creativity based on individual exceptionalism has evolved as part of the orthodoxy of Western managerial practice is applied within a creative business organisation in the business of “symbolic production&rdquo

    		•
  • Q : Responsibility Accounting Explain the

    Explain the term Responsibility Accounting and types of responsibility centres with example?

    		•
  • Q : Capitalization Method for Goodwill

    Capitalization Method: (Goodwill method): In this technique capitalized value of the firm is computed on the basis of normal rate of return. Difference between the capitalized value and real capital employed is termed as goodwill.

    		•
  • Q : Causes of current account deficits

    United States has experienced constant current account deficits since early 1980s. List some of the major causes of the deficits? What could be the consequences of these constant U.S. current account deficits?

    		•
  • Q : What are Impersonal accounts What are

    What are Impersonal accounts and how it is classified?

    		•
  • Q : Firms attaining the U.S. firms

    Presently, several foreign firms from both the developed and developing countries attained high-tech U.S. firms. What would have motivated these firms in order to attain the U.S. firms?

    		•
  • Q : Cash Discount State the definition of

    State the definition of Cash Discount?

    		•
  • Q : Why Liabilities are so important Why

    Why are Liabilities are so important? Write some of its Significance in Accounting?

    		•
  • Q : Evaluate the impact of a recent

    A 2000 word essay (maximum allowed 2,200) Accessing Learning Outcomes: Knowledge 1 and 2 Skills 1, 2, 3 and 5                 "Evaluate the impact of a recent healthcare initiative on nursing practice".<

    		•
  • Q : Foreign commerce trade State three

    State three basic documents which are essential in order to conduct the typical foreign commerce trade?  Discuss briefly the purpose of each.

    		•