Raising Money in U.S. Stock Markets
1. Is raising money in U.S. stock markets more - or less - difficult than in the rest of the world?
To start, using the article that is cited for the class is…well, dated at the very least. The United States has gone through at least a complete financial cycle since after the article was written. The tech bust and then the quickly following tragedy of September 11, 2001 with the ensuing market meltdown were just the beginning.
Just to put it into perspective, “’During the last seven years, we 've had recession, 9-11, Rita, Katrina, two wars, the mutual fund scandal, the meltdown in subprime, Enron, WorldCom and Martha Stewart.’ According to Michael Arnow, director of financial planning in the Milwaukee office of SJA Financial Advisory, and others said the best way for investors to handle the volatility was to have a well-diversified portfolio and to not panic.”
It has been easier to raise money in overseas markets in the last year due in large part to the weakening dollar. The sub-prime mortgage debacle has had a much more damaging effect than anyone previously suspected. Asian and European markets continue to have good numbers and are actually exhibiting growing strength.
2. Is it generally worthwhile for a non-US company to get listed on a U.S. exchange? What are the advantages? How this is done? What are ADR 's?
It is worthwhile for a non-US company to get listed on the US exchanges. Even though the NYSE, Chicago Mercantile Exchange, and other domestic boards have taken a drubbing the last few quarters, it is still good to get the exposure of a company on US boards. The exposure that US exchanges have is high. US exchanges are viewed as often by financial traders as other similar boards around the world like the Tokyo exchange, London exchange, and etcetera.
Getting listed on a US exchange via an ADR is typically done by a leading bank. A quick search on Google listed The Bank of New York Mellon as a possible agent. “DR issuers
To start, using the article that is cited for the class is…well, dated at the very least. The United States has gone through at least a complete financial cycle since after the article was written. The tech bust and then the quickly following tragedy of September 11, 2001 with the ensuing market meltdown were just the beginning.
Just to put it into perspective, “’During the last seven years, we 've had recession, 9-11, Rita, Katrina, two wars, the mutual fund scandal, the meltdown in subprime, Enron, WorldCom and Martha Stewart.’ According to Michael Arnow, director of financial planning in the Milwaukee office of SJA Financial Advisory, and others said the best way for investors to handle the volatility was to have a well-diversified portfolio and to not panic.”
It has been easier to raise money in overseas markets in the last year due in large part to the weakening dollar. The sub-prime mortgage debacle has had a much more damaging effect than anyone previously suspected. Asian and European markets continue to have good numbers and are actually exhibiting growing strength.
2. Is it generally worthwhile for a non-US company to get listed on a U.S. exchange? What are the advantages? How this is done? What are ADR 's?
It is worthwhile for a non-US company to get listed on the US exchanges. Even though the NYSE, Chicago Mercantile Exchange, and other domestic boards have taken a drubbing the last few quarters, it is still good to get the exposure of a company on US boards. The exposure that US exchanges have is high. US exchanges are viewed as often by financial traders as other similar boards around the world like the Tokyo exchange, London exchange, and etcetera.
Getting listed on a US exchange via an ADR is typically done by a leading bank. A quick search on Google listed The Bank of New York Mellon as a possible agent. “DR issuers
References: Kathleen Gallagher (23 January). Don 't panic, experts say: Ride out market volatility with diverse portfolio, they advise. McClatchy - Tribune Business News. Retrieved March 8, 2008, from ABI/INFORM Dateline database. (Document ID: 1416805481). Investopedia.com “ADR Basics: What is An ADR?” Retrieved on 16 March 2008 from http://www.investopedia.com/university/adr/adr1.asp Forbes.com The Economy ”Key Forecaster Says U.S. In Recession” Brian Wingfield, 03.14.08, 5:40 PM ET Retrieved on 16 March 2008 from http://www.forbes.com/business/2008/03/14/economy-nber-feldstein-biz-beltway-cx_bw_0314economy.html