establishment of price in free marketthe process by which price is determined by negotiation in a free market
Recommended Further Reading (Term count)
Digital Capital: Harnessing the Power of Business Webs Don Tapscott, David Ticoll, and Alex Lowy (2000) Provides insight into the growing importance of new electronic marketplaces.
Explores how the internet and digital media open up new avenues to wealth creation, using real-world examples.
Guides companies wanting to successfully develop business-to-business exchanges or other electronic alliances and accumulate digital capital.
Securitization: Understanding the Risks and Rewards by Tarun Sabarwal In broad terms, securitization can be viewed as pooling receivables and selling claims to these receivables in capital markets. For example, a mortgage lender may pool together thousands of mortgages and sell claims on mortgage receivables to investors. Historically, the first securitizations in the 1970s in the United States were those of pools of mortgages. With the success of mortgage-backed securities, other groups of receivables were...
Acquiring a Secondary Listing, or Cross-Listing by Meziane Lasfer Cross-listing is controversial and raises a number of academic and practitioner questions, particularly: Why and how does a firm cross-list, and does cross-listing create additional value for existing stockholders? The purpose of this article is to discuss the institutional framework of cross-listing, the classification of depository receipts (DRs), the types of DR available in the United States, the reasons why companies list abroad (by...
The Role of Short Sellers in the Marketplace by Raj Gupta The terms “short selling” or “shorting” are used to describe the process of selling financial instruments, such as equities or futures, that the seller or holder does not actually own but borrows from various sources. If the value of the instrument declines, the short seller can repurchase the instrument at a lower price and cover the loan.Short sellers have long played the crucial role of price discovery in financial markets. If short selling...