--%>

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 : Accouning Required parts are clearly

    Required parts are clearly describes at the end of the questions and additional resource contains the journal article related to question three.. Approx 2000 word assignment.. First Question is of not more than 1000 words to make memorandum and its example is given at end of assignment and require

  • Q : Foreign subsidiary conforming norm of

    Specify some conditions under which you would suggest that foreign subsidiary conforms to local norm of the financial structure?

  • Q : Characteristics of Zero coupon bonds

    State the characteristics of the Zero coupon bonds market instrument.

  • Q : Vernon’s product life-cycle theory of

    Discuss the Vernon’s product life-cycle theory of the FDI. Specify the strength and weakness of theory?

  • Q : Accounting Acquisition Entry and

    Acquisition Entry and Consolidation Working Paper On January 31, 2014, Phoenix, Inc. acquired all of the outstanding common stock of Spark Corporation for $400 million cash plus 25 million shares of Phoenix' $10 par value common stock having a market value of $90 per share. Registration fees were $

  • Q : Write a Matlab function Fourbar Write a

    Write a Matlab function Fourbar (r1,r2,r3,r4,theta,speed) that animates three cycles of a fourbar linkage having link lengths r1, r2, r3, r4. The function first checks to ensure the mechanism isGrashof (including the change-point c

  • Q : Market participants in foreign exchange

    Who are market participants within the foreign exchange market?

  • Q : Need for valuing goodwill Need for

    Need for valuing goodwill: If the mutual rights of the partners modifies then the party which makes a sacrifice should be compensated. This basis of compensation is goodwill therefore we require calculating goodwill. Mutual rights change beneath follo

  • Q : Cause why relationships tend to come

    Identify and briefly explain the patterns in terms of how relationships tend to come apart (not together) or deteriorate. Use a real or hypothetical illustration to describe each of such phases.

  • Q : Digital Image Processing Homework Using

    I am just trying your services to get one very small project done for Digital Image Processing Homework Using Matlab.I need the code and the approach of the code.The Homework is :A. Import a color image.B. Convert color image to gray-level image.C. create