Saturday, April 4, 2009

international stock market (2)

in the international context ,expectations of the future exchange rate behavior of the foreign currency in which the stock is quoted relative to home currency of the investor are also important ,as well as the anticipated macroeconomic behavior of the country in which the stock is being sold .An individual investor in recent years has been increasingly able to shift the analysis of the selection of stock to mutual funds which bring together the financial resources of many buyers and which specialize in transactions in international stocks , but the fund managers themselves obviously still need to take account of all these influences.Unfortunately,information on the size of stock purchases made across country borders is difficult to obtain . A general consensus among Observers and participants in the market is that the volume of such equity transaction been increasing with the spread of multinational companies,the increased mobility of capital in general, and the emergence and maturing of stock exchanges in many developing countries .While hard data are thus lacking ,we next present various pieces of evidence that are consistent with the prevailing view of the increased international purchases of stocks .

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