World Financial Markets

WORLD FINANCIAL MARKETS

 Most countries in the world have at least one stock market; some have more than one  Listing your stocks on an exchange is a complicated process; you must apply and be approved  Most of the stocks listed on a stock market are from companies in that country (domestic companies)  However, a company does not have to be based in a particular country to be listed on its stock exchange  As an investor, buying stocks from different nations helps diversify your portfolio

Some of the most important international stock exchanges include:

Hong Kong  Hong Kong Stock Exchange (HKEx or HKSE)  Hong Kong is a major financial centre  The HKEx is important because it’s open opposite hours to North American markets  Often, a good performance on the HKEx can improve stock performance on North American markets  Companies listed on this exchange: Manulife Financial, Esprit, HSBC

Japan  Tokyo Stock Exchange (TSE)  Second largest stock exchange in the world  Another major financial centre whose market is open opposite hours to North American markets  Companies listed include Toyota, Honda, Sony and Sega United Kingdom  London Stock Exchange (LSE)  Companies include Shell, British Petroleum, Rolls-Royce and Cadbury

United States:  New York Stock Exchange (NYSE)  Most powerful stock exchange in the world (worth $25 Trillion in Dec. 2006)  Located on Wall Street  Companies include Wal-Mart, Ford, IBM, Kraft Foods, Coca- Cola  The NYSE includes many international companies too (TD, CIBC, etc.)

 American Stock Exchange (AMEX)  A smaller, New-York-based stock market  Separate from the NYSE  Companies are generally smaller than those on the NYSE or NASDAQ  Companies listed: Imperial Oil, British American Tobacco

 NASDAQ  Stands for: National Association of Securities Dealers Automated Quotation  Created in 1971  World’s first electronic stock market (no traders)  Traditionally home to many high-tech stocks  Companies include Microsoft, Intel, Dell, EBay and Yahoo