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Financial Jargon Buster Dictionary

This glossary is provided for information only and is not regulated by the Financial Services Authority.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Emerging Markets

Financial markets in countries with developing economies, where industrialisation has commenced and the economy has linkages with the global economy. The financial markets in these countries are immature compared to those of the world's major financial centres, but are becoming increasingly sophisticated and integrated into the international markets. These markets provide potentially high returns but are subject to high risk and volatility.

The term Emerging markets is used to describe a nation's social or business activity in the process of rapid growth and industrialization. Currently, there are approximately 28 emerging markets in the world, with the economy of China considered to be the largest. According to The Economist many people find the term dated, but a new term has yet to gain much traction.

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