Also found in: Dictionary, Acronyms, Wikipedia.
Investing in emerging markets is considered very risky. The financial markets of developing countries are typically small, with a short operating history. Emerging markets exist in undeveloped regions of the world, which are very volatile and therefore have great growth potentials but also pose significant risks. Corruption, political instability, illiquidity, and currency collapse are just some of the significant risks of emerging regions. Argentina's economic collapse is the latest example of the risk involved in emerging countries.Thomas M. Tarnowski, Senior Business Analyst, Global Investment Banking Division, Citigroup, Inc.—Salomon Smith Barney, New York, NY, and London, UK
A loosely defined term generally referring to countries with relatively stable governments,developing economies,and an increasing ability to spend money on consumer goods.