Hi, I dont have the books with me and I am trying to recall the name of a concept. In the emerging market, the major shares are held by a small portion of people, either the founding family or the major shareholder. So in reality the outstanding shares are limited to a small amount which leads to the illiquidity in these markets. what is the concept/term called in the book? Thanks a lot!!
closely held…? is that what you’re looking for? or lower free float in emerging markets?
Free Float. You adjust for the actual # of shares that are investable or able to be held by outside investors.
ya, it is free float! thanks a lot!!