Investment & Securities Markets Evolve, 1-16-08
The investment and securities industry in the U.S. remains a vast and vibrant sector. Nearly 4 billion shares trade on an average day on the NYSE, Amex and NASDAQ combined. In late 2007, former U.S. Federal Reserve chief Alan Greenspan estimated the total value of equities traded on major exchanges around the world at $50 trillion, about double what it was five years earlier in 2002. At the same time, he estimated the total value of global long-term securities of all types at nearly $100 trillion, including stocks, bonds and other financial instruments. What with the stock market crash in 2000 and the recent recessions, the investments market has begun to evolve in some new ways to accommodate the changing needs of the investing public. According to a recent report by Plunkett Research, Ltd., some of the most interesting of these trends include:
1) The Market for Risky Debt and Subprime Mortgages Collapses/ Global Banks Scramble for New Capital.
As 2007 wore to a close, it became more and more obvious that many of the world's leading banks were in need of additional capital to shore up their finances due to losses on subprime debts and other risky investments.
2) Globalization Changes the IPO Landscape/New York Loses Market Share to Hong Kong and London.
The number of initial public offerings (IPOs) plummeted after the stock market crash of 2000. It's a brighter picture today for IPOs worldwide, but U.S. exchanges are losing market share to exchanges in other nations. The financial district of London and the London Stock Exchange (LSE), have become serious competition to Wall Street.
3) NYSE and NASDAQ Up the Ante in Electronic Trading by Acquiring ECNs/The NYSE Evolves to a Hybrid Market.
One of the most remarkable developments to spring from the computer age is the Electronic Communications Network, or ECN. Leading ECNs include Instinet (acquired by NASDAQ in December 2005), Archipelago (acquired by the NYSE) and BRUT (acquired by NASDAQ in September 2004).
To find out more about these exciting trends and others, check out Plunkett’s Investments and Securities Industry Almanac 2008, or go to www.plunkettresearch.com and sign up for a subscription to Plunkett’s completely up-to-date online database!
About Plunkett Research, Ltd.
Plunkett Research, Ltd. is a leading publisher of complete business research and analysis resources designed to enable professionals in marketing, research and finance to access complete trends analysis, statistics, technology analysis and financial analysis of the world’s most exciting industries. For more information, visit www.plunkettresearch.com, or call 713.932.0000.