--%>
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 : Explain the term Company Explain the

    Explain the term Company in reference to Accounting?

    		•
  • Q : Darwin and Moths Conduct an internet

    Conduct an internet search by using the terms Darwin and Moths ("Darwin Moths", without the quotes). Learn about this famous illustration of Darwin's theory of natural selection, and write a brief paragraph describing it.

    		•
  • Q : Matlab Applications in Control System

    Student faces a lot of difficulties in Matlab control system assignments and topics. If you are also having same issues and problems then www.tutorsglobe.com is the best available solution for you. We have highly skilled and experienced tu

    		•
  • Q : Calculate the PV You expect the price

    You expect the price of the stock 3 years from now to be $119.04 (i.e., you expect P ˆ   3  ?? = $119.04). Discounted at a 10% rate, what is the present value of this expected future stock price? In other words, calculate the PV of $119.04.&nb

    		•
  • Q : Define deviance Define deviance ; give

    Define deviance; give three illustrations of deviant behavior and use them to explain why deviance is socially constructed.

    		•
  • Q : Transaction and Economic exposure

    Define transaction exposure and explain how it is different from the economic exposure?

    		•
  • Q : Computing the credit rating List some

    List some of the factors does Standard & Poor’s analyzes in computing the credit rating it assigns a sovereign government?

    		•
  • Q : Define the term Accounts Payable

    Accounts Payable: It is an accounting entry which symbolizes an entity's obligation to pay off a short-term debt to its creditors. Accounts payable entry is found on balance sheet beneath the heading current liabilities. Accounts payable are frequentl

    		•
  • Q : NPV capital budgeting framework Specify

    Specify intuition behind NPV capital budgeting framework?

    		•
  • Q : Why farmers were angry at Railroad

    Why were farmers angry at the Railroad companies?

    		•