EC249 Study Guide - Final Guide: Msci, Euronext, Market Capitalization
Document Summary
Market capitalization of developed countries 75% of total market capitalization of the world"s equity market is accounted for by the market capitalization of 31 developed economies. Market capitalization of developing countries 25% is from emerging countries (latin america, Emerging markets tend to be much more concentrated than our markets because there are relatively few companies invested in emerging markets. Measures of liquidity measure of liquidity for a stock market is the turnover ratio the ratio of stock market transactions over a period of time divided by the size, or market capitalization, of the stock market. Market structure, trading and costs: primary markets shares offered for sale directly from the issuing company. These shares are issued for firms to raise capital for investments. Firm time a firm sells shares is referred to as an initial public offering or ipo: secondary markets provide market participants with liquidity and continuously determine prices for all traded equities.
