Are frontier markets attractive for large institutional investors, individual investors or companies seeking to acquire frontier markets for control?

Frontier markets is a term used in international stock
markets to describe countries that have small market capitalization and/or low turnover
and/or market restrictions unsuitable for inclusion in the larger emerging market
category indexes, but demonstrate a relative openness to and accessibility for foreign
investors and are not under extreme economic and political instability. Countries coming
under the category of frontier markets fall under three broad category. One, countries
are likely to have relatively high development level which are still small for emerging
markets. two, countries with investment restrictions that have begun to loosen. Finally
countries at a lower development level than the existing “mainstream” emerging
markets.

Investing in frontier market is equally attractive
or risky for all types of investors including individual investors, institutional
investors or companies. However it should be noted that no single investor of company
can control the entire frontier market. Also no one really owns the market. Stock market
refers to the buying and selling of stocks. This is not something that can be owned by
any one.

There are some rating agencies that  rate markets
of some countries as emerging markets. These ratings are not 100 percent correct, and
decisions based on these ratings alone can be faulty. Also within a frontier market the
payoff for any investor will depend a lot on the portfolio of stocks and the timing of
investment and investment. However, based on the description of nature of emerging
markets, we can say that in the long term entering such markets is likely to be
profitable for all  types of investors.