Exam 13: International Equity Markets

The Paris Bourse was traditionally a call market.In a call market,an agent of the exchange accumulates,over a period of time,a batch of orders that are periodically executed by written or verbal auction throughout the trading day.Both market and limit orders are handled in this way.The major disadvantage of a call market is that

A crowd of floor traders on the NYSE

In which type of policy actions by the Fed can liquidity "dry up"?

Companies domiciled in countries with weak investor protection can reduce agency costs between shareholders and management

In mutual funds,investment in emerging foreign equity markets

The first ADRs began trading ________ as a means of eliminating some of the risks,delays,inconveniences,and expenses of trading the actual shares.

A measure of "liquidity" for a stock market is

The secondary stock markets

As a measure of "liquidity",

Changes in exchange rates

In an agency market,the broker takes the client's order through the agent,who matches it with another public order.The agent can be viewed as

Asprem (1989)found that changes in industrial production,employment,and imports,the level of interest rates,and an inflation measure explained only a small portion of the variability of equity returns for 10 European countries,but that substantially more of the variation was explained by

"Yankee" stock offerings are

A stop order is an order to buy or sell a stock once the price of the stock reaches a specified price,known as the stop price.When the specified price is reached,your stop order becomes a market order,The advantage of a stop order is

ADRs

Following monetary union and the advent of the euro:

A specialist on the NYSE

The over-the-counter (OTC)market is a dealer market.Almost all OTC stocks trade on the National Association of Security Dealers Automated Quotation System (NASDAQ),which is a computer-linked system that shows

Calculate the dollar-based percentage return an American would have if he bought a British stock at ₤50 per share and sold it one year later at ₤60.The spot exchange rate one year ago was $1.50 = ₤1 and the spot rate prevailing at the end of the year was $1.20 = ₤1.

Global Registered Shares