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Investing & the Stock Market vocabulary · Markets & Indices

Emerging markets

Meaning in investing & the stock market, with examples

/ɪˌmɜːrdʒɪŋ ˈmɑːrkɪts/nounCommon term

In investing & the stock market, emerging markets means: The financial markets of countries whose economies are growing and becoming more developed, but which are still seen as riskier than developed markets.

In Turkish: gelişmekte olan piyasalar, yükselen piyasalar, GOP

How it is used

Index providers such as MSCI classify countries as developed, emerging or frontier; Türkiye, Brazil and India are usually in emerging market indices. Reports discuss flows into emerging markets, EM currencies and EM bonds. Often shortened to EM.

Example sentences

  1. Emerging markets attracted strong inflows after the dollar weakened.

  2. Turkish stocks make up only a small share of the main emerging markets index.

Common collocations

  • emerging markets fund
  • emerging market currencies
  • emerging market bonds
  • flows into emerging markets
  • benchmarkA standard, usually a market index, against which the performance of a fund, portfolio or investment manager is measured.
  • indexA number that shows how the prices of a selected group of shares or bonds change over time, used to measure a whole market or sector.
  • volatilityHow much and how quickly the price of an investment or a market moves up and down. High volatility means large, frequent price swings.
  • diversificationSpreading money across different investments, sectors, countries or asset classes so that a loss in one of them has a smaller effect on the whole portfolio.

More terms: Markets & Indices

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This page explains English vocabulary for learners. It is not financial advice.