Emerging Market Economy
A nation's economy that is progressing toward becoming advanced, as shown by some liquidity in local debt and equity markets and the existence of some form of market exchange and regulatory body.
Emerging markets generally do not have the level of market efficiency and strict standards in accounting and securities regulation to be on par with advanced economies (such as the United Stated, Europe and Japan), but emerging markets will typically have a physical financial infrastructure including banks, a stock exchange and a unified currency. Investopedia Says:
Emerging markets are sought by investors for the prospect of high returns, as they often experience faster economic growth as measured by GDP. Investments in emerging markets come with much greater risk due to political instability, domestic infrastructure problems, currency volatility and limited equity opportunities (many large companies may still be "state-run" or private). Also, local stock exchanges may not offer liquid markets for outside investors. Related Terms:
Balance Of Trade - BOT
Brazil, Russia, India and China - BRIC
Capitalism
Emerging Market Fund
Export
Gross Domestic Product - GDP
Import
International Monetary Fund - IMF
International Organization Of Securities Commissions - IOSCO
Lesser-Developed Country - LDC |