• Research Paper on:
    Stock Market Characteristics and Emerging Markets

    Number of Pages: 5

     

    Summary of the research paper:

    In five pages emerging markets are examined in terms of behavior, characteristics, and differences from developed countries' stock markets. Five sources are listed in the bibliography.

    Name of Research Paper File: TS14_TEemergm.rtf

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    Unformatted Sample Text from the Research Paper:
    developed markets. If we have a manager that is seeking to use a diversification strategy that builds a fund with forty to fifty different stocks we may argue that although  this approach may be suited to the developed countries, the characteristics of the emerging markets mean that this stagy will not necessarily be as effective and may also have a  different risk profile. This may result in the fund not succeeding in the same way as the developed funds is lower. If we look at the characteristics of the emerging  markets then we can consider why different strategies should be used. One of the reasons that the emerging markets are attracting more attention is due to the greater potential  for higher growth levels. With the measure that are in place to create a modern economy with the ideas of free markets and capitalism, the liberalisation of the markets has  resulted a potentially fast growing economic environment. In the emerging markets there has been the reduction of the role of the state and the privatisation of many state owned industries,  such as telephone companies. This has created more opportunities (Coggan, 2002). The demand for these stocks is high, this also pushes up the market process. When we consider that emerging  markets make up 44% of the global economy, but in the 1990s accounted for a total of two thirds of the global economic growth we can see the attraction and  the potential for growth (Anonymous, 2002). This is a characteristics of most emerging markets, countries as wide ranging as Mexico, Malaysia and Korea.  The problem with this type of growth is that it is short lived. The creation of demand leads to an over exuberance of the market, and the situation will return 

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