MeasuresofMarketConcentrationEmergingMarketstendto bemuchmoreconcentrated than our markets,Concentrated in relatively few companies.That is. a few issues account for a muchlarger percentage of the overall marketcapitalization in emerging markets than inthe equity markets of the developed world
Measures of Market Concentration ❖Emerging Markets tend to be much more concentrated than our markets. ● Concentrated in relatively few companies. ❖That is, a few issues account for a much larger percentage of the overall market capitalization in emerging markets than in the equity markets of the developed world
MarketStructure,Trading Practices, and CostsPrimaryMarketsShares offered for sale directly from theissuing companySecondary Markets Provide market participants with marketabilityand share valuation
Market Structure, Trading Practices, and Costs ❖Primary Markets ▪ Shares offered for sale directly from the issuing company. ❖Secondary Markets ▪ Provide market participants with marketability and share valuation