International Finance - International Equity Financing
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7 Terms
what is international cross-listing
stock of a company listed on different stock markets and not just in its home country
what is Depositary Receipt (DR)
It represents a number of original shares held in custody by a financial institution in the country of the stock exchange
what is American Depositary Receipts (ADR)
The original shares are held in custody by a US depositary bank (like Bank of New York Mellon), which converts all dividends and other payments into USD and charges a small custodial fee.
what are Global Registered Shares
Ordinary share of a company that trades and transfers freely across national borders
what are Global Depositary Receipts
Like ADRs but they can trade across many markets and settle in the currency of each market
what are the advantages of cross-listing
reduction in cost of capital
increased liquidity
Wider shareholder base
increase Market integration
Corporate governance signal →improves investor protection and disclosure requirements
access to capital
what are the disadvantages of cross-listing
listing costs
Accounting requirements/disclosure
Note 
Flashcards (29)