The international equity market consists of all stocks bought and sold outside the issuer's home country. Stock exchange listings of the greatest number of companies from outside their own borders are Frankfurt, London, and New York.
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What is the international equity market? Identify the factors responsible for its expansion.
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International equity markets can be thought of as stock exchanges where investors can purchase shares of a publicly traded company outside a domestic issuer's home nation. By allowing foreign investors to purchase shares, the investor base is expanded and demand for equity ownership grows. Often times, the investor will use the local currency to transact in international stock exchanges, but not always. Emerging countries represent potentially lucrative opportunity, but also carry considerable downside risk due to political and regulatory factors. The ongoing economic development in emerging markets along with privatization, the advent of cyber-markets, and an increase of investment banking activity are the primary factors contributing to the growth of international equity market expansion.
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