Chapter 19 STOCK MARKETS AROUND THE WORLD. Overview zMultiple listings on national markets zTrading costs in international stock markets zGlobal Diversification.

Slides:



Advertisements
Similar presentations
WORLD EQUITY MARKETS Capitalization of Developed Countries
Advertisements

International Financial Management Vicentiu Covrig 1 International Equity Markets (Eun and Resnick chapter 13)
FINANCE IN A CANADIAN SETTING Sixth Canadian Edition Lusztig, Cleary, Schwab.
McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Asset Classes and Financial Instruments CHAPTER 2.
PRESENTED BY : VISHAL SOIN GDR & EURO BONDS. DEPOSITORY RECEIPTS Depository receipts are instruments issued by international depositories (ODB), and they.
Global Depository Receipts & American Depository Receipts
C ONTENT D EPOSITORY R ECEIPTS The Benefits & Risks of Depositary Receipts G LOBAL D EPOSITORY R ECEIPTS Parties Involved GDR Market GDR Listing Key Steps.
Almost 90% of the total market capitalization of the world’s equity markets is accounted for by the market capitalization of the developed world.
FIN639 Vicentiu Covrig 1 International Portfolio Investment (chapter 17 in Hirschey and Nofsinger)
International Portfolio Investments
CHAPTER THIRTEEN INVESTING INTERNATIONALLY © 2001 South-Western College Publishing.
FIN437 Vicentiu Covrig 1 International Portfolio Investment (chapter 15 in Eun and Resnick)
International Portfolio Investment
Irwin/McGraw-Hill Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. 8-0 INTERNATIONAL FINANCIAL MANAGEMENT EUN / RESNICK Second.
INBU 4200: Lecture 8 Sourcing Globally. Important Announcements Project 4: Due Thursday, April 8 th Upcoming “events” Quiz 4: Thursday, April 15 th Exam.
Investments, 8 th edition Bodie, Kane and Marcus Slides by Susan Hine McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights.
1 XI. Mutual Funds. 2 TOPICS TO BE DISCUSSED 1.THE U.S. MUTUAL FUND INDUSTRY 2.PERFORMANCE MEASUREMENT 3.BIAS IN INDUSTRY DATA 4.PERSISTENCE IN PERFORMANCE.
International Equity Markets
CHAPTER ELEVEN MARKET INDEXES © 2001 South-Western College Publishing.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved INTERNATIONAL FINANCIAL MANAGEMENT EUN / RESNICK Fourth Edition.
Chapter 18 COMMON STOCK MARKETS IN THE UNITED STATES.
CHAPTER TWENTY-FIVE INTERNATIONAL INVESTING. THE TOTAL INVESTABLE INTERNTATIONAL CAPITAL MARKET PORTFOLIO n GLOBAL DISTRIBUTION OF CAPITAL (by market.
Chapter 18 COMMON STOCK MARKETS IN THE UNITED STATES.
Copyright © 2003 Pearson Education, Inc.Slide 12-1 Prepared by Shafiq Jadallah To Accompany Fundamentals of Multinational Finance Michael H. Moffett, Arthur.
Investments: Analysis and Behavior
European Stock Markets and Recent Developments By : Suchaya Hongstong.
0 Barclays Global Investors & Other ETF Sponsors What is an Exchange Traded Fund? ETF Structure and Mechanics.
International Financial Management Vicentiu Covrig 1 International Portfolio Investment (chapter 11)
International Portfolio Investment (Eun and Resnick chapter 15)
Day 3 in the am # 1 / 34 International Corporate Finance International Corporate Finance (ICF)
Better insight + Better process = Better results Beyond just bricks & mortar: global property securities Stephanie Fennessey Client Portfolio Manager,
Stock Offerings and Investor Monitoring
Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved INTERNATIONAL FINANCIAL MANAGEMENT EUN / RESNICK Fourth Edition.
Copyright McGraw-Hill/Irwin, 2002 Deficits, Surpluses, and Debt The Public Debt Ownership of the Public Debt Substantive Issues The Crowding Out.
Chapter 19 STOCK MARKETS AROUND THE WORLD. Multiple listings on national markets ze.g. Deutsche B ö rse in 1999: 8:1 foreign:German zadvantages yDiversify,
McGraw-Hill/Irwin © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. Financial Securities CHAPTER 2.
1 International Portfolio Management. 2 We will talk about Why investors diversify their portfolios internationally How much the investors.
Why should we consider investing in International markets?  Diversification  Growth – some markets may be growing faster than U.S.
INTERNATIONAL FINANCIAL MANAGEMENT EUN / RESNICK Fifth Edition Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.
International Portfolio Investment
FNCE 4070 Financial Markets and Institutions Lecture 8 Financial Markets: A Global Overview.
MARKET INDEXES CHAPTER THIRTEEN Practical Investment Management Robert A. Strong.
International Diversification
CHAPTER THIRTEEN INVESTING INTERNATIONALLY Practical Investment Management Robert A. Strong.
CHAPTER ELEVEN MARKET INDEXES Practical Investment Management Robert A. Strong.
Notes on International Financial Market Prof. C P Ravindranathan.
Essentials of Investments © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Fourth Edition Irwin / McGraw-Hill Bodie Kane Marcus 1 Chapter 2.
C12S3: Investing in Equities, Futures, and Options Main Idea: ▫Equities, or stocks, represent ownership of a corporation.
McGraw-Hill/Irwin © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. Financial Securities CHAPTER 2.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8-0 INTERNATIONAL FINANCIAL MANAGEMENT EUN / RESNICK Third Edition Chapter Objective:
By: Blayne Paulsen & Ryan Good. Today, the FSE covers the complete process chain including securities and derivatives trading and clearing, transaction.
Chapter 19 – Int’l Stock Markets Globalization and Trading Overseas Multiple Listings U.S. Stocks on Foreign Exchanges Foreign Stocks on U.S. Exchanges.
1 International Finance Chapter 6 (b) Balance of Payments I: The Gains from Financial Globalization.
Lecture 6 ADRs & Global Industry Analysis Investment Analysis.
Chapter 19 – Int’l Stock Markets Globalization and Trading Overseas Multiple Listings U.S. Stocks on Foreign Exchanges Foreign Stocks on U.S. Exchanges.
American Depository Receipts Sherry Chen Andrew Frankel Christina Nitz Jean Yu NYFC Partners February 27, 2002.
OAKWOOD CAPITAL MANAGEMENT LLC Annual Return (%) Equity Returns of Developed Markets Boxed Return is highest return for the year. In US dollars. Source:
Chapter 15 SECONDARY MARKETS. Function of Secondary Markets zProviding security values and required returns zProviding liquidity.
Chapter 12 Supplement B: Equity Securities Chapter 12 Supplement B Equity Securities.
Chapter 11 International Portfolio Investment
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. CHAPTER 10 How Exchange Rates Are Determined.
Chapter Eight Stock Exchanges. Stock and Shares Strictly speaking, stocks are fixed interest securities and shares are equities Share indices are usually.
INTERNATIONAL FINANCIAL MANAGEMENT EUN / RESNICK Fifth Edition Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.
 It is a grouping of stocks, bonds, or other securities – or it can be a “basket” of goods and services (Consumer Price Index or “CPI”)  Purpose is to.
Basic Finance Securities Markets
International Equity Markets
Basic Finance Securities Markets
Chapter 22 Managing an International Investment Portfolio
Global Financial Instruments
FIN 440: International Finance
Presentation transcript:

Chapter 19 STOCK MARKETS AROUND THE WORLD

Overview zMultiple listings on national markets zTrading costs in international stock markets zGlobal Diversification ycorrelation of world equity markets

United Kingdom zLondon Stock Exchange (LSE) yordinary shares of local and foreign firms yprivate fixed interest securities yBritish government securities zOperations yOTC market zReforms yBig Bang

Germany zFrankfurt Stock Exchange (FSE) zMarket Segments yofficial market yregulated market yNeuer Market zExchange Electronic Trading (Xetra)

Japan zTokyo Stock Exchange (TSE) yfirst section ysecond section zOperations ycontinuous auction market yOTC market zReforms yfinancial big bang

Chinese Stock Market zA shares yrestricted to Chinese investors ydenominated in Chinese yuan ylimited to state-owned companies zHong Kong yH shares yred chips z B shares yreserved for foreign investors yShanghai B-shares are quoted in U.S. dollars yShenzen B-shares are quoted in Hong Kong dollars

Recent European Stock Market Reorganizations zLondon Stock Exchange zDeutsche Börse zEuronext zOther European Stock Market Activities yNASDAQ yNYSE

New European Exchanges zMarkets for Emerging Companies yNeuer Markt in Frankfurt yNouveau Marche in Paris yAlternative Investment Market in London zEasdaq in Brussels

New Japanese Exchanges zNASDAQ Japan yauction market ysmall issues are traded through the market making system ylarge issues are traded by the auction method

Ownership and Control of National Stock Exchanges zPrivately Owned Markets yUnited States, United Kingdom, Hong Kong, Canada, Japan, Australia zPublic Institutions yFrance, Spain, Italy, Belgium zBanks ySwitzerland, Austria

Trading Procedures and Computerization zContinuous Market zCall Market zComputerized Trading

Dealers in Major Markets zSpecialist System zCompetitive Dealer System zComputerization

Stock Market Indexes zJapan yTokyo Stock Price Index (TOPIX) yNikkei 225 Stock Average zUnited Kingdom yFinancial Times-Stock Exchange 100 (FTSE 100) z Germany yDeutscher Aktienindex (DAX) z France yCAC 40 z Others yHang Seng Index yMorgan Stanley EAFE Index

Global Depository Receipt zGlobal Depository Receipt (GDR) yBank-issued title to shares of stock traded in a foreign country. zAmerican Depository Receipt (ADR) yTradable right to a foreign share held in trust by a U.S. financial institution that issues the ADR. zDepository Receipt ycombination of GDRs and ADRs

American Depository Receipt zTypes: ynonsponsored ysponsored zTrading Location yNYSE yASE yOTC market z Advantages ytrade stocks on U.S. exchanges ypayments made and received are in U.S. dollars yavoid some country- specific taxes

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2025 SlidePlayer.com. Inc. All rights reserved.