The Development of Stock Markets: In Search of a Theory

Volume: 3 Number: 3 September 1, 2013
  • Kamal A. El Wassal
EN

The Development of Stock Markets: In Search of a Theory

Abstract

This paper aims to provide a framework for the main determinants of stock market development. Assessing stock market development requires not only an understanding of its main determinants but also a clear definition of what “stock market development” means and how progress towards it can be measured. This paper reconsiders the concept of stock market development and suggests five dimensions for assessing it. In addition, it proposes four sets of factors that shape or determine stock market development: supply factors, demand factors, institutional factors and economic policies. While both supply factors and demand factors serve as “building blocks” of the stock market, institutional factors and economic policies serve as “supporting blocks. The paper concludes by emphasizing three principles. First, stock market development is a difficult, complex, multi-faceted, and long-term process. Second, stock market development is only part of the overall development of a country’s financial system. Third, stock market development is mainly a private sector activity.

Keywords

Details

Primary Language

English

Subjects

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Journal Section

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Authors

Kamal A. El Wassal This is me

Publication Date

September 1, 2013

Submission Date

September 1, 2013

Acceptance Date

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Published in Issue

Year 2013 Volume: 3 Number: 3

APA
Wassal, K. A. E. (2013). The Development of Stock Markets: In Search of a Theory. International Journal of Economics and Financial Issues, 3(3), 606-624. https://izlik.org/JA24GN55DP
AMA
1.Wassal KAE. The Development of Stock Markets: In Search of a Theory. IJEFI. 2013;3(3):606-624. https://izlik.org/JA24GN55DP
Chicago
Wassal, Kamal A. El. 2013. “The Development of Stock Markets: In Search of a Theory”. International Journal of Economics and Financial Issues 3 (3): 606-24. https://izlik.org/JA24GN55DP.
EndNote
Wassal KAE (September 1, 2013) The Development of Stock Markets: In Search of a Theory. International Journal of Economics and Financial Issues 3 3 606–624.
IEEE
[1]K. A. E. Wassal, “The Development of Stock Markets: In Search of a Theory”, IJEFI, vol. 3, no. 3, pp. 606–624, Sept. 2013, [Online]. Available: https://izlik.org/JA24GN55DP
ISNAD
Wassal, Kamal A. El. “The Development of Stock Markets: In Search of a Theory”. International Journal of Economics and Financial Issues 3/3 (September 1, 2013): 606-624. https://izlik.org/JA24GN55DP.
JAMA
1.Wassal KAE. The Development of Stock Markets: In Search of a Theory. IJEFI. 2013;3:606–624.
MLA
Wassal, Kamal A. El. “The Development of Stock Markets: In Search of a Theory”. International Journal of Economics and Financial Issues, vol. 3, no. 3, Sept. 2013, pp. 606-24, https://izlik.org/JA24GN55DP.
Vancouver
1.Kamal A. El Wassal. The Development of Stock Markets: In Search of a Theory. IJEFI [Internet]. 2013 Sep. 1;3(3):606-24. Available from: https://izlik.org/JA24GN55DP