9. Depository Receipts

9. Depository Receipts - Intensity to Be A'Global Stock Has...

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Intensity to Be A 'Global' Stock Has Waned WSJ, 5/10/05 International Business Machines Corp. employs people on six continents and sells its services nearly everywhere. But Big Blue has decided its stock needn't be quite so worldly. This week, the Armonk, N.Y., technology and business-services company is scheduled to take its shares off the Tokyo Stock Exchange, following its departure from exchanges in Vienna, Frankfurt and Zurich. The Tokyo move was announced in March. IBM joins a number of large multinational companies that are reducing the number of exchanges that host trading of their stocks. The trend is a reversal from thinking popular in the 1990s, when many predicted the world's largest companies would trade nonstop at exchanges across the globe, as major commodities and currencies do. Since then, investors have been voting with their pocketbooks against that idea, taking trades to whatever country that will get them the best price. Usually, these institutional investors -- who have trading desks around the world -- find that price in the stocks' home market. IBM, for example, says about 90% of its stock trading happens at the New York Stock Exchange, including "the vast majority" of orders coming from Japan. "It just didn't make
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This note was uploaded on 09/27/2009 for the course UGBA 133 taught by Professor Distad during the Summer '08 term at Berkeley.

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9. Depository Receipts - Intensity to Be A'Global Stock Has...

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