Stock Exchange
Ekta Buchala
Literature Review
1.The evolution of the Philadelphia
one of our visiting scholars, Swarthmore College professor John Caskey, explains some of the factors that account for the PHLX’s long life. Although Caskey focuses on the evolution of the PHLX, he also profiles some of the seismic shifts in U.S. securities markets in recent decades and illuminates the role of the largely overlooked regional stock exchanges. (Caskey,2004)
2. Convergence of Caribbean
This paper uses daily data for market returns as well as for the cross-listed securities on the three main stock exchanges in the Caribbean: the Barbados Stock Exchange, the Trinidad and Tobago Stock Exchange and the Jamaica Stock Exchange to examine the beta-convergence and sigma-convergence of the markets. The results suggest that with respect to sigma-convergence, while the markets are becoming increasingly integrated, the convergence of the returns of the cross-listed securities is debatable, indicating some degree of information asymmetry. The results of the beta-convergence imply that the speed of convergence is still rather slow in comparison to other markets throughout the world. (Stacia and Roland,2010)
3. The Structural Evolution
The importance of these phenomena, a large amount of the research literature focuses on these strategic decisions. However, significantly less interest is drawn to the internal organization of stock exchanges. The financial environment has considerably affected them, leading stock exchanges to redefine their roles and to rethink their management strategies. Rather than considering the stock exchange as a non-profit organization, this paper considers it as a for-profit firm, focuses on the structural evolution of these exchanges/firms and explores their organizational structure. (Slimane,2012)
4. Uncorrelations in the Value
we aim at studying the function of reflecting the economic and currency conjuncture at a certain point and from a certain perspective and uncorrelations in the value stock exchange in Bucharest. (Hada,2008)
5. Bubbles in Tehran
This paper, first, represents theoretical aspects of rational bubbles. Second, it shows one of the tests introduced to detect rational bubbles- integration/ cointegration based test. Finally, on the empirical side, it explores existence of both explosive and periodically collapsing bubbles in Tehran Stock Exchange. The results reject the existence of explosive bubbles but fail to reject the existence of periodically collapsing ones. (Mani and Zahedi, 2008)
6.The Lyon
A recent literature started to study the complex functioning of the Paris financial centre as well as the interaction between its two components, the official Paris Bourse and its OTC rival, the Coulisse. Nevertheless, a very small literature is devoted to the regional French exchanges. By studying the interactions between Paris and Lyon, we find that, after the 1881-1882 boom and burst, the Lyon Stock Exchange has to struggle for surviving facing fierce competition from the Paris Bourse and main national banks particularly after the 1898 reorganisation of the Paris _noncoal centre, while the strong activity of Coulisse before the 1895 gold mines crash had a positive effect on the Lyon one. After the 1898 reorganisation, the Lyon Stock Exchange survived thanks to a new listing policy favourable to SMEs and the development of second-tier market for both these unofficially traded SMEs and unlisted risky (mainly foreign) stocks. (Ducros and Riva, 2014)
7. Stocks listed on the Botswana Stock Exchange
we analyse the role of Exchange Traded Funds (ETFs) in the price discovery process of stocks listed at the Botswana Stock Exchange. Using dailyreturnsdata covering the period 3 January 2013 to 31 December 2015 for Beta Betta ETF and Domestic Company Indices, we utilize a VECM model to find out whether the Betta Beta ETF is playing a significant role in the price discovery process of stocks listed on the Botswana Stock Exchange. We found the error correction term to be statistically significant thereby confirming that the Beta Betta eGFI’s playing a significant role in the price discovery of stocks listed on the Botswana Stock Exchange. (Kambeu , 2017)
8. Reform of the London
During the early 1980s a few irresistible pressures combined to force radical change on the London Stock Exchange. These embraced: competitive threats, in the shape of international and, to a lesser degree, domestic securities business that was by-passing the Exchange; the increased bargaining muscle of institutional investors; the agreement reached between the Secretary of State for Trade and Industry and the Chairman of the Stock Exchange following removal of the Exchange’s rule book from an Office of Fair-Trading inquiry; and advances in information technology. (Hall,1987)
9. The Johannesburg Stock Market
the growth in market capitalisation, the development of an active and massive market in gilts and the growth in the volume of new capital raised. Though small by the standards of the great stock exchanges of the northern hemisphere, smaller even than the exchanges of Zurich and Basel, the Johannesburg Stock Exchange by 1987 was the largest in the southern hemisphere in terms of market capitalisation, and far and away the largest in Africa. Moreover, because of its gold-mining base and the presence of some very large corporations, the Johannesburg Stock Exchange exerts an influence upon the world economy out of proportion to its size. This chapter will focus mainly upon the shares traded, the capital raised and the composition of the holders of securities. (Jones,1992)
10. The Impact of Macroeconomic Variables
The purpose of this study was to analyse long-run causal relationship between ISE (Islamabad Stock Exchange) and macroeconomic variables in Pakistan and also find out the direction of causality. The impact of macroeconomic variables on stock prices of ISE has not been previously discussed by the researchers. The monthly data from January 2001 to December 2010 was used in this study. The set of macroeconomic variables include Exchange Rate (ER), Foreign Exchange Reserves (FER), Industrial Production Index (IPI), Interest Rate (IR), Imports (M), Money Supply (MS), Wholesale Price Index (WPI) and Exports (X). Descriptive statistics and Unit root test, Johansen Co-integration Technique and Granger Causality Technique were employed to analyse the long-run and causal relationship between the macroeconomic variables and stock prices. (Rasool and Hussain , 2014)
11. Conclusion
Stock issued by listed companies and unit trusts, bonds and pooled investment products can be traded on a stock exchange. A stock exchange functions as a ‘continuous auction’ market where transactions are conducted between the buyers and sellers. A stock exchange plays an important role in the economy. It helps to raise capital for business, mobilize savings for investment, facilitates the growth of companies, and enables profit sharing. It assists in creating investment opportunities for small investors, and raising capital for development projects taken up by the government.
Reference
Edson Kambeu, 2017. “The role of Exchange Traded Funds in the price discovery process of stocks listed on the Botswana Stock Exchange,” International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 6(1), pages 141-148, January.
Faten Ben Slimane, 2012. “The Structural Evolution of Stock Exchanges,” Post-Print hal-01128032, HAL.
Howard, Stacia & Craigwell, Roland, 2010. “Convergence of Caribbean Stock Exchanges,” MPRA Paper 40930, University Library of Munich, Germany.
Jérémy Ducros & Angelo Riva, 2014. “The Lyon Stock Exchange: A Struggle for Survival (1866-1914),” PSE Working Papers halshs-00960528, HAL.
John P. Caskey, 2004. “The evolution of the Philadelphia Stock Exchange,” Business Review, Federal Reserve Bank of Philadelphia, issue Q2, pages 18-29.
Maximilian Hall, 1987. “Reform of the London Stock Exchange,” Palgrave Macmillan Books, in: The City Revolution, chapter 1, pages 1-20, Palgrave Macmillan.
Mohammad Ali Mani & Davood Zahedi, 2008. “Bubbles in Tehran Stock Exchange,” Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 13(2), pages 143-155, fall.
Nosheen Rasool & Muhammad Mubashir Hussain, 2014. “The Impact of Macroeconomic Variables on Stock Prices: An Empirical Analysis of Islamabad Stock Exchange,” Journal of Global Economy, Research Centre for Social Sciences,Mumbai, India, vol. 10(2), pages 73-93, June.
Stuart Jones, 1992. “The Johannesburg Stock Market and Stock Exchange, 1962–87,” Palgrave Macmillan Books, in: Stuart Jones (ed.), Financial Enterprise in South Africa since 1950, chapter 12, pages 273-301, Palgrave Macmillan.
Teodor Hada, 2008. “Uncorrelations In The Value Stock Exchange In Bucharest,” Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, “1 Decembrie 1918” University, Alba Iulia, vol. 1(10), pages 1-30.