1. Chapter 19 STOCK MARKETS AROUND THE WORLD

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

3. 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

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

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

6. 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

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

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

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

10. 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

11. Trading Procedures and Computerization zContinuous Market zCall Market zComputerized Trading

12. Dealers in Major Markets zSpecialist System zCompetitive Dealer System zComputerization

13. 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

14. 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

15. 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