Develop a stock market Essay

(a) Dependable law and regulationsThe existence of untroubled laws and regulations, non only from the government but also from the enterprises themselves is a necessity conditions since these all the organizations to compete and cooperate with the oversea and worldwide companies.(b) Resolution of constitution riskInvestor confidence in reliable property right and stable, market-oriented policies be a necessary condition for financial integration and the maturation of uphill 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(ip) test of political commitment to safer private property rights, successful privatization has a significant 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 returns. The evidence showed the progr ess in privatization little by little leads to increased confidence.(c) Promoting healthy financial institutionsHealthy financial institutions especially banks, is a crucial 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 be good and then retrenching violently afterwards. Governance would first benefit from a greater internal focus on risk-adjusted rates of return, particularly when reward 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 examine standardIt is recommended profession should be is self-regulated through accounting standard dialog box instead of regulate by government, improve the credible of accounting and auditing chronicle up to international accounting system (IAS) standards.