frequency. During the recent year of market turbulence
(end of 2008 through November of 2009), gross capital
flows retreated to levels seen at the beginning of the decade.
This decline is more likely attributed to a manifestation
of large stock and bond market valuation drops
rather than any real changes in cross-border investing
behavior of US or global residents.
Equities have been an important component of this
rapid expansion of cross-border capital flows. During recent
years, domestic and foreign equities constituted
about 35% of total gross capital flows involving US residents,
a figure that is more than double the equivalent
fraction seen in the 1970s and 1980s. An important factor
in facilitating this globalization in equity markets, in particular,
has been market deregulation around the world
that has made it easier to own and trade foreign securities.
But even more importantly, tremendous competition has
arisen among major stock exchanges around the world to
attract overseas companies to cross-list and trade their
home-market shares on these new markets.
Cross-listing – also referred to as ‘dual listing,’ ‘international
listing,’ or ‘interlisting’ – is usually a strategic
frequency. During the recent year of market turbulence(end of 2008 through November of 2009), gross capitalflows retreated to levels seen at the beginning of the decade.This decline is more likely attributed to a manifestationof large stock and bond market valuation dropsrather than any real changes in cross-border investingbehavior of US or global residents.Equities have been an important component of thisrapid expansion of cross-border capital flows. During recentyears, domestic and foreign equities constitutedabout 35% of total gross capital flows involving US residents,a figure that is more than double the equivalentfraction seen in the 1970s and 1980s. An important factorin facilitating this globalization in equity markets, in particular,has been market deregulation around the worldthat has made it easier to own and trade foreign securities.But even more importantly, tremendous competition hasarisen among major stock exchanges around the world toattract overseas companies to cross-list and trade theirhome-market shares on these new markets.Cross-listing – also referred to as ‘dual listing,’ ‘internationallisting,’ or ‘interlisting’ – is usually a strategic
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