Stocks traded on emerging equity markets are not always as frequently traded as stocks listed on developed equity markets. In addition, data series on quoting companies can be unacceptably short. As a result it is necessary to make a distinction between active and inactive stocks. Omran (2007) applies a methodology to determine whether a stock has been active or inactive. Two statistics are computed to determine whether a stock is active or inactive. The first statistic is α, the percentage of weeks the stock has been active to the number of weeks in the period. A stock is selected when the percentage of weeks the stock has traded is at least 90%. The second statistics, ω, is the average number of transaction for each stock during the period. Since the number of transactions is not available, in this article the companies that have at least 100 observations during the period are selected.
