# Emerging Markets

*Saving & Investing — Finicade finance glossary*

Emerging markets are economies with growing capital markets but weaker institutions, liquidity and disclosure than developed ones.

Emerging markets are economies with growing capital markets but weaker institutions, liquidity and disclosure than developed ones — China, India, Brazil, South Africa and dozens more. The case for holding them is higher long-run growth and diversification; the reality includes currency risk, governance risk and periodic capital-flight crises. Note that fast GDP growth has historically translated poorly into equity returns, because growth often arrives through new share issuance that dilutes existing owners.

**Also known as:** EM, developing markets, frontier markets

**Related terms:** [Diversification](https://finicade.com/glossary/diversification), [Exchange Rate](https://finicade.com/glossary/exchange-rate), [Country Risk](https://finicade.com/glossary/country-risk), [Asset Class](https://finicade.com/glossary/asset-class), [GDP (Gross Domestic Product)](https://finicade.com/glossary/gdp)

Source: https://finicade.com/glossary/emerging-markets