Develop a stock market Essay Example for Free

Develop a stock market Essay(a) Dependable law and regulationsThe existence of dependable laws and regulations, non only from the government but excessively from the enterprises themselves is a necessary conditions since these all the organizations to compete and cooperate with the oversea and worldwide companies.(b) Resolution of policy riskInvestor confidence in reliable property sound and stable, market-oriented policies are a necessary condition for pecuniary integration and the development of emerging stock markets. Announced market-oriented policies may be reversed, however, and are initially not fully credible. We argue that sustained privatization and liberalization programmes represent a major test of political commitment to safer private property rights, successful privatization has a fundamental effect on emerging stock market development through the resolution of policy risk, i.e. the risk of ex post policy changes with redistributive impact on investment return s. The evidence showed the progress in privatization gradually leads to increased confidence.(c) Promoting healthy financial institutionsHealthy financial institutions especially banks, is a polar prerequisite for financial stability. The largest number of crises still arise, be it in emerging market economies or industrial countries, from financial institutions overextending themselves when times seem good and then retrenching violently afterwards. brass would first benefit from a greater internal focus on risk-adjusted rates of return, particularly when rewarding traders and credit officers. The relentless pursuit of shareholder value, without this crucial adjustment, could prove a very dangerous strategy.(d) Developing worldwide acceptable accounting and audit exampleIt is recommended profession should be is self-regulated through accountingstandard board instead of regulate by government, improve the credible of accounting and auditing report up to international accounting sy stem (IAS) standards.