The International Capital Market (2)必看课件资料.ppt

Overview of International Stock Market At year-end 2003, total market capitalization of the world’s equity markets stood at $31,948billion Of this amount, 89 percent is accounted for by the 31 developed countries. The other 11% is accounted for by the market capitalization of developing countries in “emerging markets”. Latin America Asia Eastern Europe Mideast/Africa Measures of Liquidity The equity markets of the developed world tend to be much more liquid than emerging markets. Liquidity refers to how quickly an asset can be sold without a major price concession. The turnover ratio is the result of stock market transactions over a period of time divided by the size of the stock market. Turnover Ratio in Developed Countries (Year End 2003, transactions in USD/market capitalization in USD) Spain 158 Germany 130 The United States 123 Italy 122 The United Kingdom 101 The Turnover Ratio in Developing Countries (Year End 2003, transactions in USD/market capitalization in USD) Pakistan 497 Indonisia 237 Taiwan 185 India 139 China 83 Argentina 6 Measures of Market Concentration Emerging Markets tend to be much more concentrated in relatively few companies. That is, a few issues account for a much larger percentage of the overall market capitalization in emerging markets than in the equity markets of the developed world. Market Structure, Trading Practices, and Costs Primary Markets Shares offered for sale directly from the issuing company. Secondary Markets Provide market participants with marketability and share valuation. North American Equity Market Benchmarks European Equity Market Benchmarks Asia/ Pacific Rim Equity Market Benchmarks Reasons for International Equity Trading Globally integrated equity trading developed since 1980s. Following are the reasons: Benefits of international