Currency Wars: “Beggar Thy Neighbor” Policy
February 12, 2025
Nickel Shortage During the 1970’s, nickel was in extremely short supply in the world. This is because Canada was the largest supplier of nickel and there were certain supply issues with the Canadian nickel. On the other hand, the demand for nickel was booming given the Vietnam War which was underway. Therefore, as a result […]
The activities of most investors have historically been limited to their home country. This is largely because earlier, there were rules which made the transfer of capital between countries an arduous process. Not only was the process complex, but it also took a lot of time and was riddled with transaction costs. This is the […]
If certain high profile fund managers and bond investors are to be believed, then the bond market has just slipped into a bear market. They are not talking about the usual tightening of the Fed’s interest rates. Interest rates have risen several times over the past few years. However, every time they return to normal. […]
In the previous article, we have already learned about the repo market. We learned about how the repo market is one of the most important segments of the money market. We also learned about the large volumes of transactions that take place in the repo market. We already know that about $2 trillion to $4 […]
What the Resignation of Urjit Patel Means for the Corporate Regulator Tussle in India Recently, in India, the RBI or the Reserve Bank of India and its former governor, Urjit Patel, were in the news for their resistance to encroachment on their powers by the Government of India. Separately, the RBI and Patel were also […]
Uber and Pinterest are amongst the hottest tech start-ups in the world right now. This is why the fact that both of these companies have chosen the New York Stock Exchange (NYSE) to list their shares on is being seen as great news for the exchange. The NYSE has beaten the NASDAQ as well as many foreign stock exchanges in order to achieve this feat. This is remarkable from the point of view of NYSE. However, it also raises questions about how companies choose the stock exchange where they plan first to list their shares.
In this article, we will have a closer look at some of the factors which are commonly considered by companies before they zero down on a stock exchange.
About a century ago, the entire world was not well developed. This is the reason that there was a lot of difference in the operational performance of different stock exchanges. The operational charge at some stock exchanges was much higher when compared to the others. Also, there was a substantial difference in the liquidity offered at different exchanges.
However, in the past couple of decades, these differences have all but vanished. Stock exchanges across the world now work electronically. This allows buyers to trade seamlessly without experiencing much of a difference.
Hence, the factors which affect a company’s choice of stock exchanges has undergone a huge change over the past few years:
The factors which now play an important role in the choice of stock exchange have been listed below
However, the listing of shares on one exchange does not mean that it cannot be traded on the other exchanges. It just means that the company first chose to sell their shares on a certain exchange. Over a period of time, the shares of big companies are usually sold at all exchanges at almost the same price. Every minor price differences are exploited by arbitrageurs looking to make a quick buck.
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