Thursday, February 10, 2011

Current Events- Stock Exchange For Sale?




Looks like another piece of America is getting sold. Do you think this should be sold? Read the following article or listen to the podcast and debate the pros and cons of such a sale in a concise paragraph of your own words. Using quotes from the article, is extra credit.
http://www.npr.org/2011/02/10/133639389/new-york-stock-exchange-could-be-bought-by-germans?sc=nl&cc=brk-20110209-2218

8 comments:

  1. I think the idea of having the new york stock exchange company be owned by a foreign country is not so different. There are many companies in the United States that are foreign and those companies have been able to find success, like cars such as Mazda. In terms of economically, I don't think it will be a negative affect since Europe affairs have already been apart of the exchange system. By having Europe own 60% of the company, it would have the upper hand because they own more shares. I think if both countries don't try to be greedy over the control of things, the system should be flowing as usual, "The new company's executive committee would be drawn equally from the current leadership of both companies." The competition between Europe and The United States has made consumers less interested in buying stocks, "Increased competition has made stock trading less profitable. So the answer is to get bigger."
    By becoming a bigger company, consumers may want to invest in this new upcoming company because the company might be able to offer more to become successful and profitable. Having a joint custody of two countries would increase its international profile, possibly making them more appealing to other foreign companies that would like to do business with the United States companies.

    http://www.npr.org/2011/02/10/133639389/new-york-stock-exchange-could-be-bought-by-germans?sc=nl&cc=brk-20110209-2218

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  2. Deutsche Boerse is the owner of the Frankfurt Stock Exchange. They had a talk with the New York Stock Exchange, and made a deal, "Deutsche Boerse would control 60 percent of the shares, which means the ownership of the iconic New York Stock Exchange would be in foreign hands for the first time." This is not pose a good picture for The New York Stock Exchange in the future, if we wanted to control a separate Economy. If our economy merges with Deutsche Boerse, we would become part of the European economy. This can benefit us in a small way, especially when we are looking at a larger market. But we are also seeing the fact that they would control 60% of the stocks in this market. This would mean that we would have less control in these stocks, and the lesser control could become in the hands of a foreign country. Who knows what will happen next.

    http://www.npr.org/2011/02/10/133639389/new-york-stock-exchange-could-be-bought-by-germans?sc=nl&cc=brk-20110209-2218

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  3. I think that this could possibly be very good for the United States. According to the article listed above, "Deutsche Boerse, whose predecessor was founded in 1585, operates the stock market in Europe's largest economy. It also runs Europe's largest derivative exchange, the Eurex." (http://www.npr.org/2011/02/10/133639389/new-york-stock-exchange-could-be-bought-by-germans?sc=nl&cc=brk-20110209-2218) The fact that Deutsche Boerse, which was founded in 1585, is a trustworthy exchange because it has been around for so long and already owns Europe's largest economy. The New York Stock Exchange has not necessarily had much success lately, so trying a new ownership could help. The CEO of Deutsche Boerse, Reto Francion would be the group chairman and NYSE's current CEO, Duncan Niederauer, would be CEO in New York, and "The new company's executive committee would be drawn equally from the current leadership of both companies." (http://www.npr.org/2011/02/10/133639389/new-york-stock-exchange-could-be-bought-by-germans?sc=nl&cc=brk-20110209-2218) Deutsche Boerse is trying to strengthen its international profile and It would create the largest financial exchange if the deal is completed. Because there is so much competition, it has made stock exchange less profitable, such as the competition with CEO. Overall, becoming an even bigger company with Deutsche Boerse is good for the NYSE because the company will be even bigger, there will be less competition which means more stock exchange, there will be a fair balance of leadership between the chairman of Deutsche Boerse and the CEO of the NYSE, and Deutsche Boerse is a very reliable company to combine with.

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  4. I believe this is a horrible idea. Putting such an important company such as the NYSE in the hands of a foreign company is a big gamble. Yes, "Deutsche Boerse, whose predecessor was founded in 1585, operates the stock market in Europe's largest economy" and this could bring up our stock exchange value and bring up our economic power, but we would be at the mercy of foriegn investors. We already rely too much on Asian investors now, with this merger we would be almost completly reliant on foriegn influences. Also how good are our relations with Germans now. What would prevent them from selling the NYSE to the highest bidder. Yes "The new company's executive committee would be drawn equally from the current leadership of both companies." but that won't securly prevent the stock holder to sell the stocks to someone else. I think we need to keep our stock exchange "in the family" and ride through our depression, or do something about it, but by ourselves. American compinies need to become self reliant again and stop looking for the first "bail out" that comes walking along. Yes this was a three year long debate, but this desicion will affect America for decades to come.

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  5. I think that giving a foreign company the control of the New Your Stock Exchange is an awful idea. We already depend on so many outside companies to supply us with good we require. Just an example is that China supplies us with many products and we shouldn't try to expand our dependency on foreign influences. It is true that many companies have come to the United States and made a name for themselves. One example is Hyundai the car company. It is true that the "Deutsche Boerse, whose predecessor was found in 1585, operates the stock market in Europe's largest economy" and probably raise our economy power and make the stock exchange more valuable but it might make us be venerable to foreign investors. This would give us a bigger market instead of just going to China for most of everything we need. I am surprised that it took three years to debate about the decision about if they should merge or not. We are losing more and more control to foreign countries and eventually I see us not even being able to support ourselves.

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  6. To believe that giving a foreign company the control of New York Stock Exchange (NYSE) is a great gamble. "Deutsche Boerse, whose predecessor was founded in 1585, operates the stock market in Europe's largest economy"
    (http://www.npr.org/2011/02/10/133639389/new-york-stock-exchange-could-be-bought-by-germans?sc=nl&cc=brk-20110209-2218)
    In America already as it is depend on China which supplies us with foreign goods. Many foreigners come to America to find a way to spread there company around the world but makes it easier for them to spread there company's name from America to anywhere around the world. I believe that if we influence other foreign countries to expand the world like America does then eventually America will be losing it's business and otherwise America will crumble.

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  7. There is a possibility that the New York Stock exchange (NYSE)could soon be acquired by a European company. I think that this wouldn't be such a bad idea because it would would "create the world's largest financial exchange, with headquarters in both Europe and the U.S." (http://www.npr.org/2011/02/10/133639389/new-york-stock-exchange-could-be-bought-by-germans?sc=nl&cc=brk-20110209-2218) .This could benefit us because we would be looking at a larger market. Competition within the stock trading buisness can make it less profitable so to get bigger and expand would make NYSE a bit more powerful.

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  8. America has goods coming in from all across the world. America relies on these goods to keep our economy alive. Our economy relies a lot on the rest of the world. Why would we purposely rely on the world even more. A lot of the world doesn't like America or Americans and even though this might help our economy, it can also endanger the economy of America. American companies are beginning to do poorly and are beginning to rely on other parts of the world. I believe it is two different ideas if an american company wants to search for manufacturing costs elsewhere ( leaving americans with less jobs) but it is another thing to put the stocks of their companies in the hands of the rest of the world.
    New York Stock Exchange would be a very large financial exchange or stock. I do not believe it is very responsible to give people a lot of power over America.

    http://www.npr.org/2011/02/10/133639389/new-york-stock-exchange-could-be-bought-by-germans?sc=nl&cc=brk-20110209-2218

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