In 1990 the fastest rising stock markets in ... world were those emerging in the developing countries. There are now more than 50 stock exchanges in ... developing world: some are insignificant or dormant, others are active and growing.
It was once widely presumed that poor demand for securities would be the biggest handicap to ... emergence of stock markets in the developing world. There were not enough potential buyers in developing countries. However, it is now evident that there is generally ... adequate demand for securities, in both the primary and secondary markets, arising both from speculative interest and from ... portfolio needs of financial institutions.
Even if the emerging stock markets have some demand-side difficulties, ... more general, continuing and severe problem has been ... insufficient supply of securities. The chief markets problem in developing countries is that the secondary market for bonds and shares is often inactive. There are often not enough buyers and sellers to make ... steady market. Quite often institutional stockholders hold securities firmly matched against their future liabilities rather than engaging in frequent trade. When institutions do enter ... secondary market they may try to buy or sell in large lots, thus making a big price disturbance. As institutions amass large blocks of shares they may be tempted to exercise their market power, especially in ... field of corporate takeovers.
Speculation has been common in most of the emerging stock markets and very noticeable because of ... thinness of the markets. While the opportunity for speculation is one of the chief attractions of any stock market, the line between speculation and sharp practices is something hard to draw.
Priviliged placements, insider trading, short selling and other questionable practices have occurred throughout the developing world.
In these circumstances, ... pure theory of international trade suggests that stock markets would not be viable in all countries but would cluster at a few points of... globe, determined by the location of factor skills and time zones.
Words you may need:
dormantadj спящий; (зд.) бездействующий
presumev полагать, допускать, считать
handicapn недостаток, помеха, препятствие
steady marketустойчивый рынок
large lotsкрупные лоты
big price disturbanceсущественное колебание цен
amassv накапливать
takeovern поглощение (одной компании другой)
thinness of the marketузость рынка
speculationn спекуляция (торговля ценными бумагами с целью получения прибыли)
sharp practiceмошенничество, надувательство
insider tradingнезаконные операции с ценными бумагами на основе «внутренней» информации о деятельности компании эмитента
short selling«короткая» продажа
viableadj жизнеспособный
clusterv группироваться
Ex. 9. a) Supply the prepositions where necessary.