GEOG 216 Lecture Notes - Lecture 32: Financial Institution, High Tech, Glocalization
15 May 2016
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Document Summary
Stock markets (or exchange) are where stocks (i. e. shares) are sold and bought. Basically determining the value of stock corporate shares are going to be. Contrary to debt, capital collected via issuance of stocks doesn"t have to be returned. In terms of awarding investors they pay annual dividends to them. Until the 1970s most stock exchanges were focused on domestic activities. (mostly national and oligo-/monopolistic stock exchanges recall fordism). Deregulation of financial activities and competition between stock exchanges occurred. Mncs for instance it"s a way of tapping into new pools of capital. Also with the modernization of the financial system new instruments and innovations took place. With this also comes increased difficulties or various regulatory institutions to provide a hard to regulate. In this globalized post-fordist economy capital is very very mobile. Before 2007-2009 crisis the value of the dow jones grew significantly cause of the high-tech boom.
