Emerging marketsThe stock markets of countries which have a low per head income compared with the developed world but which nevertheless have functioning stock exchanges.For Western investors, emerging markets attract because the potential for rapid economic growth in emerging market countries is better than in more mature markets. However, the risks, both economic and political, are high.One way to get exposure to emerging markets is through a unit or investment trusts that specialises in this type of investment.
Morgan Stanley Capital International Emerging Markets Global IndexMorgan Stanley Capital International Emerging Markets Global Index
A market capitalization-weighted benchmark index made up of equities from 29 developing countries.
Emerging economyEmerging economy
1. Originally this term was applied to countries that had recently ceased to be part of the Soviet Union and its satellites, and thus emerging from centrally planned communist economies. The term drew attention to their transition to becoming market economies. 2. Rather quickly, perhaps acknowledging the importance of central planning and the failure of markets in many other countries, the term has expanded to encompass also developing countries, not necessarily ever communist, as they expanded the role of markets.
Emerging markets fundEmerging markets fund
A mutual fund that invests primarily in countries with developing economies (that is, those that are becoming industrialized). Emerging markets funds tend to be more volatile than domestic stock funds due to currency fluctuation and political instability. Consequently, fund prices can fluctuate dramatically.
Emerging marketEmerging market
1. Same as emerging economy. 2. The securities market of an emerging economy.
Emerging Company Marketplace (ECM)Emerging Company Marketplace (ECM)
A service once offered by the American Stock Exchange to help small growth companies fulfill special listing requirements. The service is no longer available.
Further SuggestionsEmerging Markets Free index (EMF)