Docr7.docx - C The role of stock markets in technology...

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C. The role of stock markets in technology financing In the previous section it was noted that bank lending is not suitable for all types of technology financing, especially for high-risk technology investments. Here the role of risk capital comes into play, whether in the form of equity financing, venture capital, angel investment or corporate venturing. However, an important prerequisite for the efficient use of this form of capital is a highly liquid, wellfunctioning stock market. An increasing number of countries have established secondary stock markets that are designed to help new technology- oriented companies obtain equity financing. The leading example is NASDAQ in the United States, which is expanding to Europe and Japan with similar regional exchanges. Europe also has a number of new market stock lists where the criteria for listing are less stringent than on the main bourses. Examples include the Neuer Markt in Germany and the Nouveau Marché in France. In Asia, examples include MESDAQ in Malaysia, KOSDAQ in the Republic of Korea and SESDAQ in Singapore. Establishing a stock

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