Measures of liquidity o The equity markets of the developed world tend to be much more liquid than emerging markets Liquidity refers to how quickly an asset can be sold without a major price concession So, while investments in emerging markets may be profitable, the focus should be on the long term Irwin/McGraw-Hill 8-<# Copyright o 2001 by The McGraw-Hill Commpanies, Inc. All rightsIrwin/McGraw-Hill Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Measures of Liquidity ⚫ The equity markets of the developed world tend to be much more liquid than emerging markets. ◼ Liquidity refers to how quickly an asset can be sold without a major price concession. ⚫ So, while investments in emerging markets may be profitable, the focus should be on the long term