【正文】
airly known price Low transactions costs Desirable Characteristics of a stock market cont’d ? Availability of information Market efficiency ? Prices react quickly to new information ? Small price fluctuations ? Narrow price spread Financing the exchange ? Transaction fees paid by members for each order executed ? Fees paid by firms when their securities are originally listed ? Annual fees by firms ? Entrance fees from new members ? sale of historic trading and market information Major challenges for the Exchanges ? Cross border trading ? Issuers and investors are expanding their horizons beyond their home markets ? Investors being much more demanding ?Regulatory improvement Transparency and Corporate Governance Corporate Governance Protection to minority Shareholders Disclosure Enhance market confidence Strong industry regulator Owners Managers Ownership of the pany is by the public in the form of shares one share, one vote Board is elected by shareholders to represent the best interests of the owners Board hires and fires the management of the pany