international stock market (6)

To participate in these funds ,and there are hundreds of such funds now,shares can be purchased in some cases on organized stock exchanges and in other cases (more prominent)directly from the mutual fund companies .A side from the differing countries in which the various fund invest ,there are other differing characteristics among them:no-load funds require no explicit charge for purchase or sale;low-load and load funds impose a charge for entering the portfolio;redemption-charge funds levy a fee upon exit ;and closed-end funds are traded on regular stock exchanges and thus involve a broker is fee upon entry and exit .With mutual funds,the choice set for investors is indeed large.
Finally,with respect to stock markets,we close by emphasizing again that,as with international bonds and international bank lending ,the increasing integration of these markets serves to facilitate the flow of capital toward its best use.As financial investors respond to perceived profit opportunities beyond their own border,they are transferring capital to destinations where it can earn a higher return .As financial capital flows for the purchase of the stock of aforeign company that is productive and profitable,this raises the book value of the company and encourages its expansion because of its more favorable balance sheet.