--%>

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 : Case study of a local public utility

    The local public utilities commission has been charged with inspecting and reporting utility problems in the area. They have three electrical inspectors and two gas inspectors, each available for 40 hours , to analyze structures in their respective areas of expertise.

  • Q : Styles of love Identify and explain the

    Identify and explain the styles of love. Describe each of these styles and give an example of each.

  • Q : Credit Claims How to handle the Credit

    How to handle the Credit Claims?

  • Q : Explain international Fisher effect

    Explain and also derive international Fisher effect.

  • Q : Development phases of Friendship There

    There are six developmental phases of how friendships develop. Identify each phase in sequence and discuss the characteristics of each phase by using real or hypothetical example to illustrate this developmental path.

  • Q : Investment approach of Warren Buffet

    Investment approach of Warren Buffet: According to Benjamin Graham, the father of securities analysis, value investment was the only form of investment which means that purchasing a stock at less than its intrinsic

  • Q : Progressivism and the womens rights

    What was the link between progressivism and the women’s rights movement?

  • Q : Social issues & person statuses Think

    Think of person you will who often irritates you or whose behaviour greats on your nerves. First list that person statuses and role then analysed his or her possible role expectations, role performance, role conflict and role strai

  • Q : Describe Long Holding Period Describe

    Describe Long Holding Period briefly with suitable example?

  • Q : Case study of an Operational-Strategy

    Develop a case study of the Operational-Strategy interface as it applies to organisational change (last 3-5 years) within your organisation, together with a project implementation case study .You are required to detail the operational chan