GEOG 216 Lecture Notes - Lecture 32: Dow Jones Industrial Average, Stock Market, Glocalization
15 May 2016
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Document Summary
Lecture 32: local global geographies of the financial crisis: Stock market (or exchange) locations where we stocks are sold and bought. Function is essentially to establish the value of shares in the market. We could be talking about different stocks common stocks versus preferred stocks versus bonds. Basic idea is to determine the value of the stock/corporate share. A way to raise capital by a company! Contrary to debt, capital collected via issuance of stocks does not have to be returned. Until 1970s: mostly national and oligo/mono politic stock exchanges (recall. Post 1970 with the ends of bw regime and globalization of the financial system things changed dramatically. There is growing competition between the stock exchange itself. Today, most stock is operated by for profit companies. Mnc"s will be cross-listed for several various exchange as a way of increasing capital in those regions of the world. On top of all of this we also have the modernization of financial instruments.
