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38 Cards in this Set

  • Front
  • Back
What is a Euroequity tranche?
US corporations engage in equity offerings which, in addition to the primary US component, include a portion of issuance reserved for sale in the Euromarkets
What are the two major world stock indexes?
1. Morgan Stanley Capital International (MSCI); includes US, Canada and EAFE
2. Europe, Australasia and the Far East Index (EAFE Index); excludes US and Canada
What is multiple listings of stocks?
listing of a stock in its home country and on an exchange in at least one other country
Why do firms want to be listed on foreign exchanges?
1. diversify sources of capital
2. international ownership diminishes prospect of takeover by other domestic concerns
3. boost product awareness, increase foreign sales
What is the Big Bang?
in equity markets, financial reforms in England in 1986 and Japan in 1966 to liberalize stock trading practices; in London- no minimum commissions, non-stock exchange members can invest in the exchange, allowed broker-dealers- could be both
What is the Stock Exchange Automated Quotations (SEAQ) bulletin board?
London International Stock Exchange's computer trading system
What is the Frankfurt Wertpapierborsen AG (FWB) later renamed the Deutsche Borse (DB)?
operates Frankfurt Stock Exchange; controlled by both domestic and foreign market participants
What is Eurex?
Deutsche TerminBorse and Sofex (Swiss) merge to form world's derivatives exchange
What is Exchange Electronic Trading (Xetra)?
new modern, cost efficient electronic trading system in Germany (1997)
What is the first section?
where large size, high turnover, large shareownership stocks are listed on Tokyo Stock Exchange
What is the Computer-Assisted Order-Routing and Execution System (CORES)?
transactions of all shares take place under it on Tokyo Stock Exchange, trading floor was closed in 1999
What is Euronext?
in 2000, Paris, Brussels and Amsterdam exchanges merged to form Euronext; goal was to form a pan-European stock market
What is the Bourse?
stock exchange in Paris
What is the Neuer Markt in Frankfurt?
attempt to replicate Nasdaq, give European start-up companies access to equity capital and stem flow of entrepreneurial talent to US
What is a Societe de Bourse?
in France and Belgium, it is a brokerage firm
What is a Societa di Intermediazione Mobilaire?
in Italy, it is a brokerage firm
What are Sociedades de Valores?
in Spain, they are brokerage firms
What is a Computer Assisted Trading System (CATS)?
computerized stock trading system, developed on the Toronto Stock Exchange, mimiced on many other exchanges
What is the Itayosa method?
used on Tokyo Stock Exchange, opens trading with a call market auction and then becomes continuous
What is the Zaraba auction?
arranges individual trades that match the lowest sale price to the highest buy price, used on Tokyo Stock Exchange
What does Cotation Assistee en Continu (CAC) mean?
fully automated electronic trading system, no need for a trading floor, used on the Bourse
What is a hoekman?
a specialist on the Amsterdam Stock Exchange
What are saitoris?
special members of the Tokyo Stock Exchange who match buy and sell orders but do not take positions for their own accounts
What is the Tokyo Stock Price Index (TOPIX)?
index produced by the Tokyo Stock Exchange; index of First Section
What is the Nikkei 225 Stock Average?
financial information firm publishes it; based on largest 225 companies of First Section
What is the Financial Times Industrial Ordinary Index or FT 30?
LSE- based on prices of shares of 30 leading companies
What is the Financial Times-Stock Exchange 100 or FTSE 100?
based on shares of largest 100 UK firms
What is the DAX or Deutscher Aktienindex?
primary German stock index; produced by Frankfurt Stock Exchange; based on 30 most actively traded shares
What is the FAZ Index?
German index; compiled by a newspaper; computed from share prices of 100 largest companies listed on the Frankfurt Exchange
What is the CAC 40 Index?
in France; produced by stock brokers and the Paris Bourse; based on 40 large and prominent firms traded
What is the Hang Seng Index?
produced by the stock exchange of Hong Kong
What is the TSE 300 Composite?
index of Toronto Stock Exchange
What is the Swiss Perfomance Index?
400 firms
What is the Financial Times World Index?
international equity index
What is the Global Index?
international equity index
What is free float?
portion of outstanding total stock of a corporation that is available for trading on public stock markets; e.g. not held buy government, stocks held by other companies
What is a Global Depositary Receipt (GDR)?
corporate equities that are traded in a foreign market are typically in this form; GDRs are issued by banks as evidence of ownership of the underlying stock of a foreign corporation that the bank holds in a trust; allows foreign corporation to bypass regulations of the foreign country
What is an American Depositary Receipt (ADR)?
American version of the GDR; benefits- can be traded on US stock market during US hours with US practices, payments are in dollars- although there are currency risks, US custodian- avoid country specific taxes