--%>
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 : 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 : Phenomenon of pricing-to-market

    Describe the phenomenon of pricing-to-market.

    		•
  • Q : Account A structure for showing the

    A structure for showing the effect of market events on a particular asset, liability, equity, earnings, or expense. The effects are measured in terms of dollars. The account looks like as a collection point in the meanwhile the processing of all the transactions involving the balance sheet or inc

    		•
  • Q : Costs of hedging through forward

    Discuss and compare the costs of hedging through the forward contract and the options contract.

    		•
  • Q : Restrictions of standard costing Write

    Write down the restrictions of standard costing?

    		•
  • Q : Meaning of Electronic Fund Transfer

    What is the meaning of Electronic Fund Transfer. Briefly describe it.

    		•
  • Q : Rule of nominal account Why the rule of

    Why the rule of nominal account is just opposite with the rule of personal account and real account?

    		•
  • Q : Whether MNC open their manufactoring

    For most global companies, China symbolizes a very attractive market in terms of size and growth-rate. Yet, it ranks lower in words of economic freedom and higher in political risk than other countries' markets because it has a communist government. Despite such risks

    		•
  • Q : Case study of Drug free at Monochem

    Read the case study entitled ‘Drug-Free and Alcohol-Free at Monochem, Inc. and answer the following questions. 1) Suppose John has developed the ethical codes for the company with an objective of creating a d

    		•
  • Q : Advantage of Historical Cost in

    What is the advantage of Historical Cost in Decision Making?

    		•