Market concentration can be measured by looking at the share of market capitalization accounted for by the large stocks. These large stocks are seen as the leading 3 to 5 firms in the market (Maunder et al. 1991). In many economies only a few companies dominate the stock market (Bundoo 1999). High concentration is not desirable as it can adversely affect liquidity, as it is common to find a negative correlation between concentration and liquidity. Table 5 shows the market concentration percentages. The leading 5 companies are considered to be large stocks in Fiji and the selection of these.
