- Under and over pricing of securities - Few securities traded lacks options, swaps e.t.c – - High Market concentration - Few Intermediaries: Presence of rules and regulations that do not favor the development of the market 2.02 Indicators of Capital Market Development High liquidity Low market concentration Presence of international integration Many securities traded: shares, bonds and derivatives Low volatility of market returns Size reasonable big – High activity Advanced technology: CDs, Foreign investor participation Presence of international integration Qualified personnel Fair pricing of securities Market friendly Regulations: Supervised closely Clear regulations which do not conflict
- Under and over pricing of securities - Few securities traded – lacks options, swaps e.t.c - High Market concentration - Few Intermediaries: Presence of rules and regulations that do not favor the development of the market 2.02 Indicators of Capital Market Development High liquidity Low market concentration Presence of international integration Many securities traded: shares, bonds and derivatives Low volatility of market returns Size – reasonable big High activity Advanced technology: CDs, Foreign investor participation Presence of international integration Qualified personnel Fair pricing of securities Market friendly Regulations: Supervised closely Clear regulations which do not conflict
financial_markets_and_institutions111.docx