International EquityMarketsChapter Ten
ChapterObjectives: This chapter discusses both the primary andsecondary equity markets throughout the world
❖Chapter Objectives: ❖This chapter discusses both the primary and secondary equity markets throughout the world
ChapterOutlineA StatisticalPerspectiveMarket Structure, Trading Practices, andCostsInternational Equity Market BenchmarksWorld Equity Market Benchmark SharesTrading in International EquitiesFactors Affecting International EquityReturns
3 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
AStatisticalPerspectiveMarket Capitalization of DevelopedCountriesMarket Capitalization of DevelopingCountriesMeasures of LiquidityMeasures of Market Concentration
A Statistical Perspective ❖Market Capitalization of Developed Countries ❖Market Capitalization of Developing Countries ❖Measures of Liquidity ❖Measures of Market Concentration
MarketCapitalizationofDevelopedanddevelopingCountriesAlmost 90% of the total market capitalization of theworld' s equity markets is accounted for by themarket capitalization of the developed world.*The other 10% is accounted for by the marketcapitalization of developing countries in“emerging markets”Recently the growth rates in these emergingmarkets have been strong, but with more volatilitythan we have here at home
Market Capitalization of Developed and developing Countries ❖Almost 90% of the total market capitalization of the world’s equity markets is accounted for by the market capitalization of the developed world. ❖The other 10% is accounted for by the market capitalization of developing countries in “emerging markets”. ❖Recently the growth rates in these emerging markets have been strong, but with more volatility than we have here at home