What are the advantages of having a local stock exchange market?

I’m researching on Guinea-Bissau, and know that the BRVM Regional Stock Exchange is serving the country. But I wanna know exactly, why you will need a local stock market and the benefits of having one. Thnx to all.

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2 Responses to “What are the advantages of having a local stock exchange market?”

  1. raysor September 11, 2013 at 12:23 pm #

    A local stock would not be quoted on the major stock exchanges due to cost and lack of liquidity. Who would be interested in a company operating in Guinea-Bissau, unless you lived there? There could be some local interest however.

  2. donfletcheryh September 11, 2013 at 12:52 pm #

    A local stock exchange can allow local government to influence who may own how much of the equity in the country’s economy. When you are dependent on an exchange outside of your jurisdiction, there is no such option.

    Now this is both a plus and a minus. Keeping control locally will force the local economy to grow only on its own resources, which is both good and bad. What happens with the big global exchanges, and any exchange that allows a major exchange to guide it, is that other countries’ capitalism establishes a complete hegemony over the local capital market. Foreign interests get to decide what can be done and what can not.

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