What factors discriminate developed and emerging capital markets?

This article identifies variables that might help an analyst to classify a stock market as either a developed or an emerging market. Although these terms are used widely, the basis for the application of the two descriptors has not been examined, using quantitative method(s) to verify the characteristics associated with each. The aim of this article is to do that, through identification of those variables associated with developed and with emerging markets. Discriminant analysis is applied, to identify a number of characteristics that do successfully differentiate between each group of markets, and helps to provide authenticity to the terms - developed and emerging.