--%>
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 : What is Asset Disposition Asset

    Asset Disposition: Getting rid of the asset or security via a direct sale or some other technique. Quite frequently you will observe insider trades report a "disposition" of some number of shares; this merely means that they sold them.

    Q : Implications of fixed and flexible

    Explain “balance of payments” identity and discuss some of its implications under the fixed and flexible exchange rate regimes.

    		•
  • Q : Prepare relevant ledger accounts

    Journalize the below transactions, prepare relevant ledger accounts and finally trial balance. . XYZ Pvt Ltd 01.01.2009 Started business

    		•
  • Q : Define Revenue Revenue : The amount

    Revenue: The amount (sum) of money which a company really receives throughout a specific period, comprising discounts and deductions for the returned merchandise. This is the "top line" or "annual income" figure from which costs are subtracted to find

    		•
  • Q : Foreign subsidiary- financial structure

    State some of the conditions under which the foreign subsidiary’s financial structure become relevant?

    		•
  • Q : Define Budgetary Control Give a brief

    Give a brief introduction of the term ‘Budgetary Control’ also writes down its characteristics?

    		•
  • Q : CASH AND ACCRUAL BASIS OF ACCOUNTING

    Using the data below,prepare abbreviated income statements for the year 2003 and 2004 on cash basis. Cash receipts from sales: 2003 2004 2005 on 2003 sales $295,000 $160,000 $30,000 On 2004 sales 0 355,000 90,000 On 2005

    		•
  • Q : Use of balance of payments Why it would

    Why it would be useful to examine a balance of payments of the country data?

    		•
  • Q : What do you mean by the term turnover

    What do you mean by the term turnover?

    		•
  • Q : Retail or client market and wholesale

    Distinguish between retail or client market and wholesale or interbank market for foreign exchange?

    		•