This research focuses on the predictive power of Internet Technology in studying the effect of socio-economic variables on stock trade in emerging countries: the case of Lebanon. It examines the role of socio-economic variables in explaining country- specific facto r s (unique risk) a nd highlights the significance of using Internet Technology as a catalyst to develop the stock trade in emerging markets.

Logistic regression was defined as a suitable model to test the research problem. The se lection of logistic regression was made because of the need to ha ndle both metric a nd non-metric independent variables to predict a binary dependent variable.

The summary findings of the research were robust. They indicated a significant effect of socio-economic variables (a country-specific facto r -unique risk) on the stock trade in the Lebanese market. In addition, they showed that Internet technology exhibited significant predictive power in stock trade. The recommendations fo r future studies included testing a new dimension of country- specific facto r s, the socio-economic variables (personal values of people) in other emerging countries, using Internet Technology to accelerate stock trade development, a nd looking fo r other facto r s that may have an effect on stock returns a nd are still not defined in the field of finance.