chapter06The Global Stock Market(国际投资,英文版).pptVIP

Francis Ibbotson Chapter 6: The Global Stock Market The Global Stock Market Chapter 6 Background A variety of different stock markets exist For instance, Germany’s market is over 400 years old while Tanzania’s began in 1998 Macedonia has only two companies trading on its stock exchange while India has 5,840 The market capitalization of the U.S. is $10 trillion while that of Guatemala is only $2 billion (in U.S. dollars) Many stock markets also trade other financial instruments Consolidations are merging stock markets and technology is pulling national markets together The Global Stock Market Aggregate market capitalization of equity shares in the world grew from $9.6 trillion in 1990 to over $35 trillion in 2000 An average rate of 14.8% annually Financial capital is very mobile In 1990 the Tokyo Stock Exchange was 30.5% of the global market but only 12.7% in 1999 North America increased its share of the world equity market from 28.0% (1990) to 50.28% (1999) The Global Stock Market Technological advances are automating experienced stock exchange employees out of jobs Stock markets are active in every time zone Brokerage Services Brokers Sales people (earning a commission) employed by dealers Have no money invested in the dealer’s security inventory Help create markets by buying and selling from employer’s inventory Brokerage firms extend credit (margin accounts) to clients Enables client to do more securities trading Brokerage Services Types of stock brokerage services Full-service Take buy and sell orders Extend margin credit to customers Hold clients’ securities in safe keeping Collect cash dividends Provide free investment research Perform ‘hand-holding’ services Pleasant telephone conversations Investment counseling Birthday cards All paid for by clients’ trading commissions Range from $30 - $150 for one common stock transaction Brokerage Services Discount Brokers Simply take orders Offer little or no investment advice No ‘hand-holding’ services provided Litt