An emerging market is based on an economy that is undertaking significant reform – normally developing nations. Generally, these types of markets are transitioning away from a low-income and less-developed economy, into a more middle-income and developed economy. It is at this stage where those invested in an emerging market can see greater returns due to rapid growth. However, it is these investors that can be exposed to great risk due to uncertainty in the economy as a result of legal and government systems.
