Public Firms

What are they? When a private firm decides that it wishes to raise capital from a wide range of investors, it may decide to go public. This means that it will sell its securities to the general public and allow those investors to freely trade those shares in established securities markets. The first issue of shares to … More Public Firms

Private Firms

What are they? A privately held company is owned by a relatively small number of shareholders. Privately held firms have fewer obligations to release financial statements and other information to the public. This saves money and frees the firm from disclosing information that might be helpful to its competitors.  How do they raise funds? When … More Private Firms

Do Stock Market Liberalization Cause Investment Booms?

Do stock market liberalization cause investment booms? What is a stock market liberalization? A stock market liberalization is when investors allowed to purchase shares from foreign exchange market. A decision from a foreign government to liberalize the stock market is believed to stimulate growth and boost the economy. However, some researchers still insist that investment … More Do Stock Market Liberalization Cause Investment Booms?