Stock Offerings and Investor Monitoring参考.ppt

4. Globalization of Stock Markets Foreign stock offerings in the United States From privatization programs Could diversifies foreign company’s shareholder base International placement process One investment bank or syndicate facilitate placement Must have secondary market to provide liquidity Global stock exchange characteristics Emerging stock markets 4. Globalization of Stock Markets Methods used to invest in foreign shares Direct purchases American Depository Receipts (ADRs) International mutual funds World equity benchmark shares---represents indexes that reflect composites of stocks for particular countries 4. Globalization of Stock Markets ADRs: represents the ownership in the shares of a foreign company trading on US financial markets. The stock of many non-US companies trades on US exchanges through the use of ADRs. ADRs enable US investor to buy shares in foreign companies without undertaking cross-border transactions. ADRs carry prices in US dollars, pay dividends in US dollars, and can be traded like the shares of US-based companies. 4. Globalization of Stock Markets 美国存托凭证：一份美国存托凭证代表美国以外国家一家企业的若干股份。美国存托凭证在美国市场进行买卖，交易程序与普通美国股票相同。美国存托凭证由美国银行发行，每份包含美国以外国家一家企业交由国外托管人托管的若干股份。该企业必须向代为发行的银行提供财务资料。美国存托凭证不能消除相关企业股票的货币及经济风险。美国存托凭证可在纽约股票交易所、美国股票交易所或纳斯达克交易所挂牌上市 4. Globalization of Stock Markets Global diversification and integration among stock markets Integration of markets during the 1987 crash All major stock markets declined, indicating the underlying cause systematically affected all markets Integration of markets during mini-crashes Example: August 27, 1998 “Bloody Thursday” Russian financial crisis Increased integration associated with increased financial technology, competition, and lessened government regulation 2.2 Stock Secondary Markets Trend: Consolidation of stock exchanges Market microstructure Specialists, floor brokers, and market-makers Role of specialists Types of orders Market order Limit order Stop order 2.2 Stock Secondary Markets Changes