Chapter Eight International Equity Markets Chapter objective This chapter discusses both the primary and secondary equity markets throughout the world
Irwin/McGraw-Hill Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. INTERNATIONAL FINANCIAL MANAGEMENT EUN / RESNICK Second Edition 8 Chapter Eight International Equity Markets Chapter Objective: This chapter discusses both the primary and secondary equity markets throughout the world
Chapter Outline o a Statistical Perspective Market Structure, Trading Practices, and Costs o International Equity market Benchmarks o World equity market Benchmark Shares o Trading in International Equities o Factors Affecting International Equity returns Irwin/McGraw-Hill Copyright o 2001 by The McGraw-Hill Commpanies, Inc. All rights
Irwin/McGraw-Hill Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Outline ⚫ A Statistical Perspective ⚫ Market Structure, Trading Practices, and Costs ⚫ International Equity Market Benchmarks ⚫ World Equity Market Benchmark Shares ⚫ Trading in International Equities ⚫ Factors Affecting International Equity Returns
A Statistical Perspective o Market Capitalization of Developed Countries o Market Capitalization of Developing Countries o Measures of liquidity Measures of market Concentration Irwin/McGraw-Hill Copyright o 2001 by The McGraw-Hill Commpanies, Inc. All rights
Irwin/McGraw-Hill Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. A Statistical Perspective ⚫ Market Capitalization of Developed Countries ⚫ Market Capitalization of Developing Countries ⚫ Measures of Liquidity ⚫ Measures of Market Concentration
Market Capitalization of Developed Countries o almost 90% of the total market capitalization of the world ' s equity markets is accounted for by the market capitalization of the developed world Irwin/McGraw-Hill Copyright o 2001 by The McGraw-Hill Commpanies, Inc. All rights
Irwin/McGraw-Hill Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. ⚫ Almost 90% of the total market capitalization of the world’s equity markets is accounted for by the market capitalization of the developed world. Market Capitalization of Developed Countries
Market Capitalization of Developing countries The other 10%o is accounted for by the market capitalization of developing countries in emerging markets atin america ■ASla Eastern Europe Mideast/ africa o Recently the growth rates in these emerging markets have been strong but with more volatility than we have here at home Irwin/McGraw-Hill 8-<# Copyright o 2001 by The McGraw-Hill Commpanies, Inc. All rights
Irwin/McGraw-Hill Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. ⚫ The other 10% is accounted for by the market capitalization of developing countries in “emerging markets”. ◼ Latin America ◼ Asia ◼ Eastern Europe ◼ Mideast/Africa ⚫ Recently the growth rates in these emerging markets have been strong, but with more volatility than we have here at home. Market Capitalization of Developing Countries