than one currency. These risks can occur in several ways:
Through the company's own transactions
Through whether it retains revenues in a foreign market or repatriates them to its home market such as the United States
Through charges levied by financial institutions involved in the transactions
Through the exposure of a country's currency to speculation
Liquidity risk refers to the ease or difficulty, speed, and complexity involved in transactions. Most Frontier and some Emerging markets are still relatively illiquid, meaning that it is difficult to buy large amounts of equities quickly and almost impossible to sell them quickly. One of the major issues for investors in these markets is the settlement of trades on the stock market. Many countries lack a central electronic market, and trades have to be settled by the movement of physical stock certificates between parties to the transaction.
Then there are issues with finding suitable custodian banks to hold the shares in the company once they have been bought. Usually it is not practical for investors to begin trading in these markets until a major international bank such as Citigroup or HSBC provides a custodian service, which guarantees that an investor actually has ownership of shares that they have purchased.