Preparing Germany for an equity culture shock

Article Abstract:

The group Deutsches Aktieninstitut (DA) is working to promote equity investment in Germany. The country lacks the equity culture found in Anglo-Saxon countries, with less than 7% of Germans investing in stocks. Retail investors generally prefer bank certificates, real estate and other less risky investments, while German companies have rarely relied on the stock market for financing. They have traditionally been self-financing or gone to banks for loans. DA Managing Dir Rudiger von Rosen argues that the dependence of German companies on loans should end and that they should rely on equity instead. He believes that the attitudes of larger companies are already starting to change in realization of the fact that financial inflows to Germany are no longer as strong as in the past as capital goes to other more attractive markets.

Germany, Investments

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Averting a Greek tragedy

Article Abstract:

The Athens Stock Exchange (ASE) has embarked on a reform program after it was rocked by a serious insider trading scandal in Nov 1996. The discovery that brokers had been trading on confidential information exposed the bourse's vulnerability to price fixing because of the slow settlement process. Capital Market Commission Pres Stavros Thomadakis was brought in to improve the management of the stock exchange. Measures taken to achieve this goal have included the abolition of certificates and the clearing of trades using the book entry method. Extensive audits have also been conducted to identify anomalous practices among ASE member firms. These audits are going to be conducted periodically. The Capital Market Commission is studying other stock exchanges in Europe to learn useful lessons in management.

Greece, Management, Athens Exchange S.A.

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Investor focus

Article Abstract:

Chinese companies issue several types of shares, traded on the exchanges at Shanghai, Shenzhen and Hong Kong. The Ministry of Finance enforces accounting and auditing standards.

China, Standards, Statistical Data Included, Accounting, Statistics, Securities industry, China. Ministry of Finance

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