Exam 13: Sourcing Equity Capital Globally

Who pays the costs of creating a sponsored ADR?

________ are negotiable certificates issued by a bank to represent the underlying shares of stock, which are held in trust at a foreign custodian bank.

In addition to gaining liquidity, which of the following could also be considered a legitimate reason for cross-listing equity?

Strategic alliances are normally formed by firms that expect to gain synergies from which of the following?

As measured by valued traded, the largest equity market is still located in the United States, but the largest derivatives markets are now located in Europe.

What are the two schools of thought regarding the worldwide trend toward increased financial disclosure by publicly traded firms. Explain which school of thought you hold to and why.

The sale of a security to a small set of qualified institutional buyers is called a

Which of the following are not contributing factors to the dominance of the London and New York Stock exchanges?

Empirical evidence has found that on average public firms that have been privatized by issuing public equity have

In order, the largest stock exchanges in the world based on market capitalization of the securities traded there are ________.

An MNE may cross list its shares on a foreign stock exchange so that it can

An advantage to American Depositary Receipts (ADRs) over Global Registered Shares (GRSs) is

The authors note empirical evidence that shows cross-listing foreign shares of stock on U.S. exchanges has a positive stock price effect. ________ for the listing of ADRs.

The number of foreign firms traded on the London exchange is ________ than the number traded on the NYSE, and the costs of listing and disclosure in London are ________ those for the NYSE.

Transaction costs for trading equity securities as measured by the bid-ask spreads are lowest on which exchange?

For the most part, U.S. SEC disclosure requirements are ________ stringent than other, non-U.S. equity market rules.

The choice of when and how to source equity globally is usually aided early on by the advice of

Which of the following is NOT a barrier to cross listing shares?

The Tokyo exchange is the number one choice of firms looking to gain liquidity by cross-listing their equity securities.

Economic studies have found that international cross-listing of securities across financial markets resulted in ________ abnormal returns that were ________ for firms resident in emerging markets with a low level of legal barriers to capital flows than for firms resident in developed countries.