EECS 1710 Lecture Notes - Lecture 37: Nyse Euronext, Global Exchange, Market Capitalization
24 Jun 2018
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EECS 1710 Lecture 37 Notes
Introduction
How Market Characteristics Vary among Countries
The global distribution of stock can then reach a much larger market, so greater
quantities of stock can be issued at a given price.
In 2000, the stock exchanges of Amsterdam, Brussels, and Paris merged to create the
Euronext market
Since then, the Lisbon stock exchange has also joined.
In 2007, the NYSE joined Euronext to create NYSE Euronext, the largest global exchange.
It represents a major step in creating a global stock exchange and will probably lead to
more consolidation of stock exchanges across countries in the future.
Most of the largest firms based in Europe have listed their stock on the Euronext
market.
This market is likely to grow over time because other stock exchanges may well join.
A single European stock market with similar guidelines for all stocks, irrespective of their
home country, would make it easier for investors who prefer to do all of their trading in
one market.
In recent years, many new stock markets have been developed.
Such emerging markets allow foreign firms to raise large amounts of capital by issuing
stock.
These markets should enable U.S. firms doing business in developing countries to raise
funds by issuing stock there and listing their stock on the local stock exchanges.
Market characteristics, such as the amount of trading relative to market capitalization
and the applicable tax rates, can vary substantially among different emerging markets.
In general, stock market participation and trading activity are higher in countries where
managers of firms are encouraged to make decisions that serve shareholder interests.
Document Summary
The global distribution of stock can then reach a much larger market, so greater quantities of stock can be issued at a given price. In 2000, the stock exchanges of amsterdam, brussels, and paris merged to create the. Market characteristics, such as the amount of trading relative to market capitalization and the applicable tax rates, can vary substantially among different emerging markets. In general, stock market participation and trading activity are higher in countries where managers of firms are encouraged to make decisions that serve shareholder interests. The stock exchanges of amsterdam, brussels, and paris merged to create the euronext market. Since then, the lisbon stock exchange has also joined. In 2007, the nyse joined euronext to create nyse euronext, the largest global exchange. It represents a major step in creating a global stock exchange and will probably lead to more consolidation of stock exchanges across countries in the future.
