Measuring Stock Development There are three variables that help measure stock development in a country; Stock Market Capitalization to Nominal GDP, Stocks Traded to Nominal GDP, Revenue Ratio. First, when it comes to measuring stock market development, you can use stock trading (stocks traded relative to nominal GDP). A rapid increase in the trading volume/value of a security on an exchange is indicative of interest in the security or market. The volume and value of trades are an important indicator of the level of liquidity, the efficiency of the infrastructure facilities of a stock market and the investment culture of the population. Liquidity is the ease with which a security is converted into cash. The activities of portfolio managers, pension fund managers and mutual fund managers can stimulate trading and improve liquidity. The level of investor awareness and the number of listings could have a positive impact on trading volume. The market float, or the proportion of the number of shares available for trading, is another factor that influences trading activities. Secondly, market capitalization is perhaps the most important criterion for evaluating the size of a capital market. Market capitalization equals stock market capitalization divided by nominal GDP. To evaluate how large a stock market is within the national economy, market capitalization is usually compared to nominal gross domestic product (GDP). This reflects the adage that the capital market is a barometer by which to measure the state of a national economy. For individual listed Companies, the size of the market capitalization is an indicator of the market value (i.e. investor perception or valuation) of the Company. So but... half of the document... Ael Todaro sees three development objectives. Produce more basic necessities such as food, shelter and healthcare and expand their distribution. Raise standards of living and individual well-being. self-esteemExpanding economic and social choice and reducing fearThe UN has developed a series of widely accepted indices to measure development against a mix of composite indicators. The United Nations Human Development Index (HDI) measures a country's average performance in three key dimensions of human development: Life expectancy Education level Adjusted real income ($PPP per capita). The United Nations Human Poverty Index (HPI) measures the percentage deprivation of illiterate adults; percentage of people without access to health services and drinking water; percentage of underweight children under five years of age.