News / Economy

New York Stock Exchange Lures Foreign Capital

New York Stock Exchange Lures Foreign Capitali
X
February 06, 2014 8:15 PM
The exchange has been at the heart of the American financial system for over 200 years. It once had a monopoly on the trading of shares in firms listed on it, but regulators did away with that in 2000. VOA's Bernard Shusman has the details.
Bernard Shusman
— The New York Stock Exchange is turning to foreign markets for capital and growth.

The exchange has been at the heart of the American financial system for over 200 years.  It once had a monopoly on the trading of shares in firms listed on it, but regulators did away with that in 2000.

But with the stiff competition, it has turned to foreign markets for expansion in the form of Initial Public Offerings of stock, called IPO’s.
 
The IPO process allows companies to raise money and gives investors a chance to buy part ownership of the company, and benefit from the firm’s possible future profits.

David A. Ethridge, senior vice president and head of the Capital Markets Group at NYSE Euronext, said the Exchange “has been able to steadily perform and allow companies to come public in a very, very programmed style that is really terrific about the U.S. capital markets because we are disclosure based.”

“They [companies] know if they come here and start a process with the Securities and Exchange Commission (SEC), we have a window with investors they can get public,” he said.

Ethridge said the Exchange is continuing to see a lot of investment money flow from around the world.

The Exchange had 10 IPO’s in January that raised $4.7 billion dollars in capital -   continuing what Ethridge says is the leading international role in raising IPO capital.

“For a couple of years China was putting out a lot of IPO capital in their local markets of Shanghai, Shenzhen and then Hong Kong as well,” he said. “So when you looked at those three destinations they were actually leading the IPO market in aggregate versus the United States.”

Ethridge predicts continued growth in IPO’s.

“Right now I think companies are doing well,” he said. “I think when you are looking at them and their performance year over year that looks strong, and, I think, that’s going to be good for the capital markets and IPO markets near term.”  

For now, traders and analysts say the world economy is responsible for the markets recent pullback. The market is undergoing a long awaited correction, said Ben Willis, managing director of the Albert Fried Company at the Exchange.  

"The trigger seems to be the central banks throughout the world readjusting their stimulus packages that have devalued their currencies,” he said.  “We are now seeing currencies revalued and that’s having a direct impact on stocks."

Willis advises investors not to worry.  He said the market correction is healthy.

“It’s like a rose bush,” he said.  “While you don’t really want to prune it, you need to keep it healthy if you want to continue to benefit from that rose bush.  And, that’s all the stock market is doing.”

You May Like

EU Court Fines Poland for Hosting CIA 'Black Sites'

Ruling is first time a court has acknowledged suspects were held and tortured at the sites, under US program launched following the 9/11 terrorist attacks More

Migrant Issues Close to Home Spur Groups to Take Action

Groups placing water, food in the desert, or aiding detainees after release, have one common goal: no more deaths of migrants crossing illegally into the US More

Video At AIDS Conference, Prevention Pill Stirs Excitement

Truveda shows promise, spurring debate over access and other approaches More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Israel Targets Gaza Supply Tunnelsi
X
July 24, 2014 4:42 AM
The Israeli military has launched a ground operation in Gaza to destroy the myriad tunnels that may have been used to smuggle weapons to Hamas. VOA's Zlatica Hoke reports that could mean more hardship for the people of Gaza, who obtain some of their essential supplies through these underground passages
Video

Video Israel Targets Gaza Supply Tunnels

The Israeli military has launched a ground operation in Gaza to destroy the myriad tunnels that may have been used to smuggle weapons to Hamas. VOA's Zlatica Hoke reports that could mean more hardship for the people of Gaza, who obtain some of their essential supplies through these underground passages
Video

Video MH17's 'Black Boxes' Could Reveal Crash Details

The government of Malaysia now has custody of the cockpit voice and flight data recorders from Malaysia Airlines Flight 17, which was hit by a missile over Ukraine before crashing last week. As VOA's Carolyn Presutti reports, the so-called black boxes may hold information about the final minutes of the flight.
Video

Video Living in the Shadows Panel Discussion

Following a screening of the new VOA documentary, "AIDS - Living in the Shadows," at the World AIDS conference in Melbourne, a panel discussed the film and how to combat the stigma associated with HIV/AIDS.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.
Video

Video Relic of Saint Draws Catholics Worried About Immigration Issue

A Roman Catholic saint who is a figure of devotion for those crossing the border into the United States is attracting believers concerned about the plight of undocumented immigrants. Mike O'Sullivan reports from Los Angeles, where a relic of Saint Toribio has drawn thousands to local churches.
Video

Video US Awards Medal of Honor for Heroics in Bloodiest of Afghan Battles

U.S. combat troops are withdrawing from Afghanistan, on pace to leave the country by the end of this year. But on Monday, U.S. President Barack Obama took time to honor a soldier whose actions while under fire in Afghanistan earned him the Medal of Honor. VOA's Jeff Seldin has more from the Pentagon.
Video

Video Ukraine Rebels Surrender MH17 Black Boxes

After days of negotiations, a senior separatist leader handed over two black boxes from an airliner downed over eastern Ukraine to Malaysian experts early Tuesday. While on Monday, the U.N. Security Council unanimously demanded that armed groups controlling the crash site allow safe and unrestricted access to the wreckage.
Video

Video In Cambodia, HIV Diagnosis Brings Deadly Shame

Although HIV/AIDS is now a treatable condition, a positive diagnosis is still a life altering experience. In Cambodia, people living with HIV are often disowned by friends, family and the community. This humiliation can be unbearable. We bring you one Cambodian woman’s struggle to overcome a life tragedy and her own HIV positive diagnosis.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.