Raising Capital in the Global Economy

Raising Capital

1 . The U .S . market has been marked as a land of opportunities and capital markets have been considered as a way of realizing those opportunities . However , the current U .S . capital market crisis fueled up by a series of events in the U .S . housing and financial markets is causing a panic for stock holders and uncertainties are clouding up hopes for its early revival (Waggoner , 2008 . Typically , capital markets allow easy financing options for companies to raise funds through offering their stocks . The U .S . Exchanges offers one

of the largest financial markets in the world and the exposure for listed companies is enormous however with a global phenomenon of recession the situation is weakening . The liquidity crisis has an adverse effect on listed companies ' performance and their future is becoming doubtful for shareholders . The funds are being withdrawn from the U .S . market by oil exporters and China whose surplus is declining and funds are much need for domestic spending (Waggoner , 2008 . In such situation raising funds through U .S . capital markets via any new stock offerings will surely become difficult and less welcoming by the investors . The weakening dollar makes it more favorable to raise funds in foreign markets however this is also affected by the slow growth exhibited by these markets such as Europe and Japan . Recently through private equity funds and ADRs significant investment was made to other countries however this is slowing down as the outlook for the worldwide economy specially...