Philippines Market capitalization of listed companies (% of GDP)

Data:	Market capitalization of listed companies (% of GDP)
Year:	1960 - 2013
Country:	Philippines
Source:	World Bank (the information in this section is direct quotation from World Bank development data)
Series Code:	CM.MKT.LCAP.GD.ZS
Topic:	Financial Sector: Capital markets
Short Definition:	0
Long Definition:	Market capitalization (also known as market value) is the share price times the number of shares outstanding. Listed domestic companies are the domestically incorporated companies listed on the country's stock exchanges at the end of the year. Listed companies does not include investment companies, mutual funds, or other collective investment vehicles.
Unit of Measurement:	0
Periodicity:	Annual
Base Period:	0
Reference Period:	0
Aggregation method:	Weighted average
Limitations and exceptions:	The stock market data is largely from Standard & Poor's Emerging Markets Data Base. Data cover measures of size (market capitalization, number of listed domestic companies) and liquidity (value of shares traded as a percentage of gross domestic product, value of shares traded as a percentage of market capitalization). The comparability of such data across countries may be limited by conceptual and statistical weaknesses, such as inaccurate reporting and differences in accounting standards. Because markets included in Standard & Poor's emerging markets category vary widely in level of development, it is best to look at the entire category to identify the most significant market trends. And it is useful to remember that stock market trends may be distorted by currency conversions, especially when a currency has registered a significant devaluation.
Notes from original source:	0
General Comments:	0
Original Source:	Standard & Poor's, Global Stock Markets Factbook and supplemental S&P data.
Statistical concept and methodology:	Market capitalization shows the overall size of the stock market in U.S. dollars and as a percentage of GDP. It is calculated by taking the share price times the number of shares outstanding. Market size is positively correlated with the ability to mobilize capital and diversify risk. The number of listed domestic companies is another measure of market size. Listed domestic companies are the domestically incorporated companies listed on the country's stock exchanges at the end of the year. Listed companies do not include investment companies, mutual funds, or other collective investment vehicles.
Development relevance:	Stock market size can be measured in various ways, and each may produce a different ranking of countries. The development of an economy's financial markets is closely related to its overall development. Well-functioning financial systems provide good and easily accessible information. That lowers transaction costs, which in turn improves resource allocation and boosts economic growth. Both banking systems and stock markets enhance growth, the main factor in poverty reduction. At low levels of economic development commercial banks tend to dominate the financial system, while at higher levels domestic stock markets tend to become more active and efficient relative to domestic banks. Open economies with sound macroeconomic policies, good legal systems, and shareholder protection attract capital and therefore have larger financial markets. Recent research on stock market development shows that modern communications technology and increased financial integration have resulted in more cross-border capital flows, a stronger presence of financial firms around the world, and the migration of stock exchange activities to international exchanges. Many firms in emerging markets now cross-list on international exchanges, which provides them with lower cost capital and more liquidity-traded shares. However, this also means that exchanges in emerging markets may not have enough financial activity to sustain them, putting pressure on them to rethink their operations.

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