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Module 3 (A) - Equity Markets
Module 3 (A) - Equity Markets
Sapna
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Syllabus
International Equity Markets Worlds Major Stock Markets Emerging Stock Markets International Equity Trading Diversification benefits of International Investment New Issue procedures Private Placements and Rule 144A fledging the currency Risk of International Portfolios.
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INTRODUCTION
A stock exchange is a corporation or mutual organisation which provides trading facilities for stock brokers and traders, to trade stock and other securities. Stock exchange also provides facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of incomes and dividends. A stock exchange is often the most important components of stock market.
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SECURITIES
Security is a fungible and negotiable instrument representing financial value The securities traded on stock exchange includes, shares issued by companies, bonds and also mutual funds.
THE ROLE OF STOCK EXCHANGES : Raising capital for business. Mobilizing savings for investment. Facilitating companies growth. Profit sharing. Creating investment opportunities for small investors. Government capital- raising for development projects. Barometer of the economy.
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LISTING REQUIREMENTS :
It is a set of conditions imposed by a given stock exchange upon companies that want to be listed. Such conditions sometimes includes minimum number of shares outstanding, minimum market capitalization, and minimum annual income. Requirements varies by stock exchange.
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Argentina
174
Brazil
Chile Colombia Mexico Venezuela
24,907
11,216 1,335 27,998 5,219
584
216 80 205 66
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17.56
2.82 0.25 52.65 2.70
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India Indonesia
2471 116
Malaysia
Pakistan Thailand
38,143
2,832 22,582
266
473 204
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49.56
1.03 101.77
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Euroequities
Shares that are in part issued outside their home country They are distributed worldwide through a multinational syndicate of banks
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Stocks
Investors
Funds
Funds
Private Placements
Stock is sold privately to a limited number of large investors.
Rule 144A
Private placements that can be traded. Provides liquidity of privately placed bonds and stocks.
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Questions??
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