Philippines Stocks traded, total value (% of GDP)

Data:	Stocks traded, total value (% 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.TRAD.GD.ZS
Topic:	Financial Sector: Capital markets
Short Definition:	0
Long Definition:	Stocks traded refers to the total value of shares traded during the period. This indicator complements the market capitalization ratio by showing whether market size is matched by trading.
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:	The turnover ratio - the value of shares traded as a percentage of market capitalization - is also a measure of liquidity as well as of transaction costs. (High turnover indicates low transaction costs.) The turnover ratio complements the ratio of value traded to GDP, because the turnover ratio is related to the size of the market and the value traded ratio to the size of the economy. Market liquidity, the ability to easily buy and sell securities, is measured by dividing the total value of shares traded by the Gross Domestic Product (GDP) of a country. This indicator complements the market capitalization ratio by showing whether market size is matched by trading. A small, liquid market will have a high turnover ratio but a low value of shares traded ratio. Liquidity is an important attribute of stock markets because, in theory, liquid markets improve the allocation of capital and enhance prospects for long-term economic growth. A more comprehensive measure of liquidity would include trading costs and the time and uncertainty in finding a counterpart in settling trades.
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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