What is an Emerging Market?

An Emerging Market is a financial market of a developing country.

The ten biggest emerging markets are

-          Mexico
-          Brazil
-          Argentina
-          South Africa
-          Poland
-          Turkey (1)
-          India
-          Indonesia
-          China
-          South Korea

Each big emerging market is an individual country; but it is the combined effect of the group as a whole that has an impact on other countries' economies.

We think of a market as a public place where buyers and sellers make transactions, directly or via intermediaries. Also it sometimes means the stock market. An Emerging market, however, is somewhat different since it quite often is a small market with a short operating history.

Emerging market economies are outpacing developed countries in the global economic recovery and may continue to do so for some time. Investors need to think globally. Emerging markets can develop and can be integrated in the global capital markets.