--%>

Pricing spill-over effect

Discuss pricing spill-over effect.

E

Expert

Verified

Assume a firm which is operating in the segmented capital market (for example, China) cross-list its stock in the London or New York. On cross-border listing, firm’s stock will be priced internationally. Moreover, pricing of the remaining purely domestic stocks will get affected in a way that such stocks will be priced partially domestically and partially internationally. Degree of international pricing depends upon the correlations between all these purely domestic stocks and internationally traded stocks.

   Related Questions in Financial Accounting

  • Q : Interference of two light waves Find

    Find and make a graph of the light intensity distribution at the interference between 2 laser beams. The data parameter are : Question Each beam has a equal diameter of 20 micro meter The angle

  • Q : Essential condition for

    Specify the essential condition for the fixed-for-floating interest rate swap to be possible?

  • Q : Calculating Average Cost 1 You're

    1 You're trying to save to buy a new $200,000 Ferrari. You have $40,000 today that can be invested at your bank. The bank pays 5.5 percent annual interest on its accounts. How long will it be before you have enough to buy the car? 2 Although appealing

  • Q : Good international monetary system

    Explain criteria for the ‘good’ international monetary system.

  • Q : Firm cross-listed on foreign stock

    Explain why and how a firm’s capital cost can be reduced when stock of firm is cross-listed on foreign stock exchanges.

  • Q : Legal Reasoning and Writing This

      This exercise does not require you to do any research, and does not require you to cite to any references or external materials.  Do not include any constitutional arguments. Like many legal and policy questions

  • Q : Functions of Bank Write some of the

    Write some of the functions of Bank?

  • Q : Major reasons of current account

    In contrast to the U.S., Japan has observed constant current account surpluses. What would be the major reasons for such surpluses? Is it advantageous to have constant current account surpluses?

  • Q : Global expansion Write an article on

    Write an article on Global expansion's strategy followed during 1990.

  • Q : Uncertainty of exchange rate

    Uncertainty of the exchange rate does not essentially means that the firms face exchange risk exposure. Explain this scenario.