International Equity

Market
Equity market
This is the market which consists of all the stocks that are bought and
sold outside the issuer’s home nation. Both firms and governments often
sell shares in the international equity market.
The buyers of these stocks, are often other companies, banks,
mutual funds, individual investors, as well pension funds. Global
companies often list their stocks on a multitude of exchanges at the same
time, and sometimes offer new stocks, only outside their home country.
There are four facets that are responsible for the past growth of the
international equity market:
spread of privatization;
economic development in developing nations;
investment bank activity;
and the inception of cybermarkets.
A Statistical Perspective

Market Market
Capitalization Capitalization
of Developed of Developing
Countries Countries

Measures of
Measures of
Market
Liquidity
Concentration
 Market structure
Trading Practices
Crowd and Costs Primary
Trading Market
Call Secondar
Markets y Market

Continuou
s Markets Broker

Over The Market

Counter Order
Agency Limit
Market Dealer Order
Market
International Equity Market
Benchmarks
 iShares
Exchange Traded Funds that trade on the American
Stock Exchange

Low – Cost convenient way to hold diversified

investments in different countries
 Cross L
isting O
Trading in A firm h
f Share
s
aving it
International Equities one or m s equity
ore fore shares l
addition ign exch isted on
to its ho an
me coun ges in
exchang try stoc
e k

Yankee St
oc k Offering
s
Direct sale Market
of new equ c k
ity capital
to US u ro p e an Sto
public inve
stors The E

Glob
to r y R ece ipts al Re
g
Deposi Shar istered
e ct ly on a es
ed di r One
sto c ks c a n be trad sha re tra
Foreign n a l s to ck market ded g
nat io loba
lly
 Amer
ican D
eposi
Recei tory
pts

• An ADR is a receipt representing a number of foreign shares

that remain on deposit with the US depository’s custodian in
issuer’s home market

• Bank serves as the transfer agents for ADRs

• Non – US investors can also invest in ADRs

Factors Affecting International Returns
• Macro eco
nomic factor
s
• Exchange
rates
• Industrial
Structure
 By, n i ka
S wap
hi r &
Sud