Emerging Market

Emerging market, or emerging economy, is market with a relatively short and uncertain history of open market relations and foreign investment. Emerging market is characteristic of a country or state that has previously had a centrally planned and isolated economy. In emerging market nations such economic conditions were generally due to long standing one-party political and socioeconomic systems. Depending on its nature and commitment to becoming a free-market economy, one emerging market may be different from another. Thus for example, after the collapse of a communist regime, Russia became a notable emerging market. Another example of an emerging market may be a developing nation, emerging from poverty or economic sanctions. The stock markets of any given emerging market tend to be more volatile than more established markets.