International Bond Meaning and Examples

What are International Bonds? International bonds are debt securities issued by a foreign entity in a currency other than the domestic currency of the issuer. These bonds are typically issued by governments, corporations, or supranational organizations to raise capital from international investors. They provide an opportunity for investors to diversify …

H-Shares: Understanding Regulation and Example

What are H-Shares? H-Shares are a type of equity security that is listed on the Hong Kong Stock Exchange (HKEX) and is denominated in Hong Kong dollars. These shares are issued by companies that are incorporated in mainland China and are traded on the HKEX. H-Shares are specifically designed for …

Hong Kong Exchanges and Clearing Limited (HKEx) Overview

About Hong Kong Exchanges and Clearing Limited (HKEx) Hong Kong Exchanges and Clearing Limited (HKEx) is a leading global financial market operator. It operates one of the largest and most active securities markets in the world, providing a platform for trading equities, fixed income, and derivatives. HKEx has a strong …

Heritage and Stabilization Fund: Meaning, History, FAQs

What is the Heritage and Stabilization Fund? The Heritage and Stabilization Fund (HSF) is a sovereign wealth fund established by the government of Trinidad and Tobago in 2007. It was created to manage and invest surplus revenue generated from the country’s energy sector, primarily from oil and gas exports. The …

Guilder Share – The Latest Stock News from New York

Stay Ahead of the Game with Guilder Share’s International Markets Updates Why International Markets Matter As a savvy investor, it’s crucial to keep an eye on international markets. The global economy is interconnected, and events happening in one country can have a ripple effect on markets worldwide. By staying informed …

Government of Singapore Investment Corporation (GIC) Overview

Government of Singapore Investment Corporation (GIC) Overview The Government of Singapore Investment Corporation (GIC) is a sovereign wealth fund established by the Government of Singapore. It was founded in 1981 to manage Singapore’s foreign reserves and invest them globally to generate long-term returns. GIC is responsible for managing Singapore’s foreign …

Global Depositary Receipt (GDR) Definition and Example

Definition of GDRs A Global Depositary Receipt (GDR) is a financial instrument that represents shares in a foreign company. It is issued by a depository bank in one country and can be traded on an international stock exchange. GDRs allow investors to hold shares in a foreign company without actually …

Forfaiting: Working, Pros and Cons, Examples

What is Forfaiting and How Does it Work? Forfaiting is a financial technique used in international trade to provide exporters with immediate cash flow by selling their receivables to a forfaiter. It is a form of trade finance that allows exporters to mitigate the risk of non-payment and obtain financing …

Foreign Portfolio Investment (FPI): The Benefits And Risks

Benefits of Foreign Portfolio Investment Foreign Portfolio Investment (FPI) offers numerous benefits for investors looking to diversify their portfolios and gain exposure to international markets. Here are some key advantages of engaging in FPI: 1. Diversification: One of the primary benefits of FPI is the ability to diversify investment holdings …

Foreign Investment: The Definition, Mechanisms, And Various Types

Definition of Foreign Investment and Its Importance in International Markets Foreign investment refers to the investment made by individuals, companies, or governments of one country in the assets or businesses of another country. It involves the transfer of capital, technology, and resources across borders, with the aim of generating profits …

Foreign Institutional Investor (FII) Definition and Regulations

Foreign Institutional Investor (FII) Definition A Foreign Institutional Investor (FII) is a type of investor that is based outside of the country in which it is investing. FIIs are institutional investors, such as mutual funds, pension funds, and hedge funds, that invest in the securities markets of foreign countries. They …

Export Credit Agency ECA Offerings and Impact on World Trade

Export Credit Agency ECA Offerings Export Credit Agencies (ECAs) play a crucial role in facilitating international trade by providing various offerings to exporters and importers. These offerings are designed to mitigate risks associated with cross-border transactions and promote economic growth. ECAs offer a range of financial products and services that …

European Sovereign Debt Crisis: Causes and Impacts

European Sovereign Debt Crisis The European sovereign debt crisis refers to a period of financial instability that affected several European countries in the late 2000s. It was characterized by a significant increase in government debt levels and a loss of investor confidence in the ability of some European countries to …

EAFE Index Definition Countries Included and Use As an Index

EAFE Index Definition Countries Included in EAFE Index Here is a list of countries included in the EAFE Index: Australia Austria Belgium Denmark Finland France Germany Hong Kong Ireland Israel Italy Japan Netherlands New Zealand Norway Portugal Singapore Spain Sweden Switzerland United Kingdom Use of EAFE Index as an Index …

Direct Foreign Investment: Types And Examples

What is Direct Foreign Investment? Direct foreign investment refers to when a company or individual from one country invests in a business or project located in another country. This investment can take various forms, such as acquiring a controlling stake in a foreign company, establishing a new subsidiary or branch …

DAX Stock Index Definition and Member Companies

DAX Stock Index: Overview and Definition The DAX Stock Index is one of the most important stock market indices in Germany and is widely recognized as a benchmark for the performance of the German stock market. It represents the 30 largest and most liquid companies listed on the Frankfurt Stock …

China’s One-Child Policy: Implications and Importance

China’s One-Child Policy: Implications and Importance The implementation of China’s One-Child Policy has had significant implications and importance both domestically and internationally. This policy, which was introduced in 1979, aimed to control the country’s population growth and alleviate the strain on resources and infrastructure. While the policy has been successful …

China A-Shares: Everything You Need to Know about Definition, History, and Comparison with B-Shares

China A-Shares: Definition, History, and Comparison with B-Shares China A-Shares are a class of shares that are traded on the Shanghai and Shenzhen stock exchanges in mainland China. They are denominated in Chinese yuan (CNY) and are only available for purchase by mainland Chinese citizens and certain qualified institutional investors. …

Certificate of Origin CO Definition Types and How to Get One

Certificate of Origin CO Definition A Certificate of Origin (CO) is an important document used in international trade to certify the country of origin of goods. It provides information about the place where the goods were produced, manufactured, or processed. The CO is typically issued by the exporter or the …

Australian Securities Exchange ASX What it is How it Works

Australian Securities Exchange ASX The Australian Securities Exchange (ASX) is the primary stock exchange in Australia and one of the largest exchanges in the Asia-Pacific region. It plays a crucial role in the Australian financial market, providing a platform for companies to raise capital and investors to trade securities. Key …

Asian Financial Crisis Causes Response Lessons Learned

Causes of the Asian Financial Crisis Economic Factors Furthermore, weak financial systems and inadequate regulatory frameworks also played a role in the crisis. Many Asian countries had underdeveloped financial sectors and lacked effective supervision and regulation. This allowed for risky lending practices and speculative investments, which further exacerbated the crisis …

American Depository Share Definition Examples Vs ADR

American Depository Share Definition Examples An American Depository Share (ADS) is a negotiable security that represents a specified number of shares in a non-U.S. company. It is a way for U.S. investors to invest in foreign companies without having to directly purchase shares on foreign exchanges. ADSs are issued by …

2008 Recession: Causes and Impact

Causes of the 2008 Recession Subprime Mortgage Crisis Financial Deregulation Another contributing factor to the 2008 recession was financial deregulation. In the years leading up to the crisis, there was a significant loosening of regulations in the financial industry. This allowed banks and other financial institutions to engage in risky …