Nowadays it could be assumed that the level of globalisation in the financial sector is very high with participants acting global. The financial markets especially the stock markets allow companies to raise funds by letting the public all around the world to participate. On the other hand investors have the possibility to take part in global- or regional-acting corporations and consequently increase their economical wealth. This work will discuss the role of stock markets as part of the financial system. For that purpose it will analyse the organisation of stock markets including structure, participants, efficiency and regulatory framework with concentrating on the London Stock Exchange (LSE) and the Frankfurt Stock Exchange (FSE). Last but not least it is comparing two main stock markets in Europe, the LSE which is the main stock market for the UK and the FSE which is the main stock market for Germany, by giving some historical and structural data.
Table of Contents
- Introduction
- Literature Review
- Scope
- Organisation of Stock Markets as a whole
- Role and Structure
- Role of Intermediaries
- Efficiency
- Regulatory
- Application
- London Stock Exchange versus Frankfurt Stock Exchange
- The UK Stock Exchange
- The German Stock Exchange
- London Stock Exchange versus Frankfurt Stock Exchange
Objectives and Key Themes
This work aims to analyze the role and function of stock markets within the broader financial system, using the London Stock Exchange (LSE) and the Frankfurt Stock Exchange (FSE) as case studies. It explores the organization of stock markets, including their structure, participants, efficiency, and regulatory frameworks. A comparison of the LSE and FSE, including historical and structural data, is also provided.
- The role of stock markets in the global financial system.
- The organization and structure of stock markets.
- The efficiency and regulatory frameworks of stock markets.
- A comparative analysis of the London Stock Exchange and the Frankfurt Stock Exchange.
- The impact of stock markets on economic growth and investor wealth.
Chapter Summaries
Introduction: This introductory chapter sets the stage by highlighting the increasing globalization of financial markets and the crucial role of stock markets in facilitating capital raising for companies and investment opportunities for individuals worldwide. It establishes the work's focus on analyzing the role of stock markets, particularly the LSE and FSE, within the financial system. The chapter briefly outlines the structure of the analysis, promising an examination of market organization, participants, efficiency, regulatory frameworks, and a comparative study of the two exchanges.
Literature Review: This chapter delves into the theoretical foundations of financial markets. It begins by emphasizing the vital role of well-functioning financial markets in driving economic growth and their impact on personal wealth and business behavior. The chapter proceeds to classify and categorize various financial markets, highlighting the importance of the bond market, foreign exchange market, and stock market. The chapter uses Mishkin (2007) to support the classification and emphasizes the stock market's significant influence on individuals' wealth and firms' investment decisions. A visual representation (Figure 1) illustrates the organization of financial markets, clarifying the distinctions between capital, money, and commodity markets, along with primary and secondary markets within the capital market.
Application: This chapter offers a comparative analysis of the London Stock Exchange (LSE) and the Frankfurt Stock Exchange (FSE), two major European stock markets. It delves into the characteristics of each exchange, providing a detailed comparison of their historical and structural aspects. This section promises to provide a deeper understanding of the differences and similarities between the two markets, offering valuable insights into their operational mechanisms and market dynamics. While specifics are not detailed in this preview, it lays the groundwork for in-depth analysis in the full text.
Keywords
Stock markets, financial markets, London Stock Exchange (LSE), Frankfurt Stock Exchange (FSE), economic growth, investor wealth, market efficiency, regulatory frameworks, capital markets, globalization.
Frequently Asked Questions: A Comprehensive Language Preview of Stock Markets
What is the purpose of this document?
This document provides a comprehensive preview of a work analyzing the role and function of stock markets, specifically the London Stock Exchange (LSE) and the Frankfurt Stock Exchange (FSE). It includes the table of contents, objectives, key themes, chapter summaries, and keywords.
What topics are covered in the Literature Review chapter?
The Literature Review chapter explores the theoretical foundations of financial markets, emphasizing their role in economic growth and wealth creation. It classifies various financial markets (including bond, foreign exchange, and stock markets), highlighting the stock market's importance. The chapter uses Mishkin (2007) as a source and includes a visual representation of financial market organization.
What is the focus of the Application chapter?
The Application chapter offers a comparative analysis of the LSE and FSE, examining their historical and structural aspects. It aims to provide insights into the differences and similarities between these two major European stock markets, detailing their operational mechanisms and market dynamics.
What are the key themes explored in this work?
Key themes include the role of stock markets in the global financial system, their organization and structure, efficiency and regulatory frameworks, a comparative analysis of the LSE and FSE, and the impact of stock markets on economic growth and investor wealth.
What is the overall objective of this study?
The study aims to analyze the role and function of stock markets within the broader financial system, using the LSE and FSE as case studies. It explores their organization, participants, efficiency, and regulatory frameworks, and provides a comparison of the two exchanges.
What are the main chapters included in this work?
The main chapters include an Introduction, a Literature Review, and an Application chapter. The preview also includes a summary of each chapter's content.
What keywords are associated with this research?
Keywords include: Stock markets, financial markets, London Stock Exchange (LSE), Frankfurt Stock Exchange (FSE), economic growth, investor wealth, market efficiency, regulatory frameworks, capital markets, globalization.
What does the Introduction chapter cover?
The Introduction highlights the increasing globalization of financial markets and the crucial role of stock markets. It establishes the focus on analyzing the role of stock markets, particularly the LSE and FSE, within the financial system and outlines the structure of the analysis.
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- Panagiotis Papadopoulos (Author), 2010, Role and Function of Stock Markets, Munich, GRIN Verlag, https://www.grin.com/document/170223
