GEOG 216 Lecture Notes - Lecture 7: Negative Equity, Subprime Lending, Cac 40
4 Apr 2016
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Document Summary
Stock market: (or exchange): where stocks (ie shares) are sold and bought. financial decisions; stock markets are also where we see other financial transaction take place. Function: establish the value of corporate shares . Stocks issued by companies to raise capital. Contrary to debt (must be repaid), capital collected via issuance of stocks does not have to be returned. A stock is just collecting capital over time. companies will pay off devidences, based on the number of shares the individuals have. Until 1970s: mostly national and oligo-/mono-polisitic stock exchange (recall fordism) Each country had their own stock market, mainly based on domestic exchanges. Increase in deregulation of financial activities. stock xchanges are starting to get owned by stock companies, or something. increase competition btw stock exchanges. Increase in mcss => more corss-listings on foreign exchanges (to tap into new pools of capital (for inv. purposes) and increase visibilty in dif countries)
