| Liquidity |
Very high |
Generally lower |
| Depth |
Deep |
Shallow |
| Breadth |
Wide variety of instruments and sectors |
Fewer instruments; dominated by a few sectors |
| Size |
High market capitalization |
Smaller size and trading volumnes |
| Volatility |
Relatively low and stable |
High; sharp swings on local or news-driven events |
| Transparency |
High: real-time data and rigorous disclosure standards |
Developing: less frequent reporting; potential opacity |
| Regulation |
Mature frameworks; strong enforcement |
Emerging rules; enforcement may lag |
| Product Sophistication |
Complex derivatives and structured products |
Basic instruments (stocks, bonds); few derivatives |
| Technology & Infrastructure |
Advanced electronic trading; low latency |
Mixed: manual and electronic; higher latency |
| Integration |
Highly integrated into global capital flows |
Gradually linking; possible capital controls |
| Cost of Capital |
Lower financing costs |
Higher risk premium → more expensive financing |