When Alibaba went public it did so using global capital markets. Which best describes the role of global capital markets?

• Global capital markets are typically available only to large multinational companies.

• The emergence of global capital markets has eliminated the need for domestic markets.

• Global capital markets have eliminated the need for domestic stock exchanges.

• Firms can access their funds held in other countries via global capital markets.

• Global capital markets bring together those who want to invest money and those who want to borrow money.

Capital markets involve many players. Market makers that helped Alibaba go public include:

• companies.

• investment bankers.

• institutions.

• individuals.

• governments.

• Firms can access their funds held in other countries via global capital markets.

• Global capital markets bring together those who want to invest money and those who want to borrow money.

Alibaba went public in order to

• raise much needed capital.

• decrease liquidity in the company.

• make it more difficult for investors to sell their stock.

• limit its need to acquire other companies.

• make it more difficult for employees to sell their shares.

Alibaba offered its IPO on

• the Hong Kong Bond Index.

• the FTSE.

• the NYSE.

• Nasdaq.

• the American Exchange.

Which is true of Alibabas decision to have its IPO in the United States?

Multiple Choice

• Risk levels for buyers in global capital markets are typically lower than in domestic markets.

• Buyers of Alibaba shares limited their ability to diversify their portfolios.

• The cost of capital in the global capital market is typically lower than in the domestic market.

• Alibaba was able to eliminate foreign exchange risk.

• Buyers of Alibaba shares limited their exposure to foreign exchange rate changes.