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

China Investigates Former Powerful Security Chief

Former security chief and member of Politburo Standing Committee, Zhou Yongkang, under investigation for suspected 'serious disciplinary violation' More

India, US Look to Reset Ties During Kerry Visit

This week's talks will be first high level interaction between two countries since Prime Minister Narendra Modi took charge More

Video Young African Leadership Program Renamed to Honor Mandela

YALI program, launched by President Obama in 2010, aims to build skills in business, entrepreneurship, public management and civic leadership More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Vietnamese Staging Chinese Product Boycott After Oil Rig Spati
X
Reasey Poch
July 28, 2014 7:18 PM
China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video Vietnamese Staging Chinese Product Boycott After Oil Rig Spat

China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video ESA Spacecraft to Land on a Comet

After a long flight through deep space, a European Space Agency probe is finally approaching its target -- a comet millions of kilometers away from earth. Scientists say the mission may lead to some startling discoveries about the origins of the water on earth. VOA’s George Putic has more.
Video

Video Young Africans Arrive in US for Leadership Program

President Barack Obama's Young African Leadership Initiative has brought hundreds of young Africans to the United States for a six-week program aimed at building their knowledge and skills in fields such as public administration and business. Out of the 50,000 young Africans who applied for the program, just one percent was accepted. VOA's Laurel Bowman caught up with some of those who made the cut and has this report.
Video

Video In Honduras, Amnesty Rumors Fuel US Migration Surges

False rumors in Central America are fueling the current surge of undocumented young people being apprehended at the U.S. border. The inaccurate claims suggest the U.S. will give amnesty to young migrants from the region. As VOA's Brian Padden reports from Honduras, these rumors trace back to President Obama's 2012 executive order to halt deportations for some young undocumented immigrants already living in the United States.
Video

Video Students in Business for Themselves

They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.

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.