Global Equity Market Basics
What are shares of a company also known as?
What is stock?
What term describes listing a company’s stock on more than one country’s stock exchange?
What is cross-listing?
What do companies often seek when borrowing in global capital markets?
What is a lower interest rate or cost of capital?
What is the risk of a currency's value changing while holding or repaying a foreign loan?
What is foreign exchange risk?
What major change in the 1980s and 1990s helped global equity markets grow?
What is deregulation?
What kind of firms often cross-list to make acquisitions easier?
What are multinational corporations?
What advantage do global capital markets have over domestic ones?
What is higher liquidity and fewer regulations?
What happened to the Korean won in the 1997 Asian Financial Crisis?
What is it depreciated sharply?
In 1994, which German company raised $300 million by issuing shares in Singapore?
What is Daimler-Benz?
Cross-listing in the U.S. led to what percent average cost of capital reduction for Hong Kong firms?
What is 2.35%?
What form of borrowing may companies use besides equity?
What are bonds or loans?
Borrowing in dollars at 6% seemed smart for Korean firms, but what was the real cost after depreciation?
What is 59%?
What is the main reason firms list their shares on foreign exchanges?
What is to lower the cost of capital?
Name one non-financial reason a company might list on a foreign exchange.
What is to boost visibility or reward local employees?
What is one reason regulation can raise the cost of capital in domestic markets?
What is disclosure or compliance requirements?
What financial instrument can a company use to hedge against FX risk?
What is a forward contract?
Why is there no “true” global equity market like there is with currencies or bonds?
What is because stock markets are still organized by country?
Which Chinese company raised $25 billion through the largest IPO ever on the NYSE in 2014?
What is Alibaba?
Why do developing countries often use global markets to raise funds?
What is because their domestic markets are too small or illiquid?
Why doesn’t hedging completely eliminate FX risk for long-term loans?
What is because forward contracts typically don’t cover long periods?