The globalization of equity market becomes important for multi-national operations due to improvements in telecommunications technology. Start-up companies are no longer restricted to raise new equity solely from domestic sources. Established firms also tap into the global equity market. Whenever a firm want to expand into a foreign market, it may choose to raise capital for its foreign subsidiary in the foreign market. For example, The Walt Disney Company initially sold 51% of its Disneyland Paris project to French investors.
Numerous MNCs also cross-list their common stocks on multiple stock exchanges. British Airways for example was listed on both the London Stock Exchange and the New York Stock Exchange thereby enabling both European and American investors to purchase its shares convenienty. Another innovation is the development of Country Fund
The globalization of equity markets has been facilitated by the globalization of the financial services industry. Most major financial services firms such as Merrill Lynch, Daiwa Securities and Deutsche Bank have expanded operations from their domestic bases into the major international financial centers. These financial services firms are eager provide these services;
Numerous MNCs also cross-list their common stocks on multiple stock exchanges. British Airways for example was listed on both the London Stock Exchange and the New York Stock Exchange thereby enabling both European and American investors to purchase its shares convenienty. Another innovation is the development of Country Fund
- Country Fund is a mutual fund that specializes in investing in a given country's firms
The globalization of equity markets has been facilitated by the globalization of the financial services industry. Most major financial services firms such as Merrill Lynch, Daiwa Securities and Deutsche Bank have expanded operations from their domestic bases into the major international financial centers. These financial services firms are eager provide these services;
- Raise capital
- Provide investment advice
- Offer stock market analyses
- Put together financial deals for clients anywhere around the world