In February of this year, the Sao Paulo Stock Market was the highest since June of 2000. ... According to Countrywatch, during the late 1990's, Brazil's stock exchanges listed 478 companies. Foreign investors can hold 49% of common stocks and 100% of preferred stocks. ... Stock pickers went for economically sensitive stocks, the so-called cyclical. ... They used monthly stock returns derived from...

• Word Count: 2005
• Approx Pages: 8
• Has Bibliography

Stock prices had risen more than fourfold from the low in 1921 to the peak reached in 1929. From 1928 - 1929, the Federal Reserve had raised interest rates in hopes of slowing the rapid rise in stock prices. ... As a result, when a variety of minor events led to gradual price declines in October 1929, investors lost confidence and the stock market bubble burst. ... The stock market crash reduced American aggregate demand significantly. ... Major Banks and financial institutions had borrowed and invested heavily in mortgage-backed securities, so when housing prices decline, the value of mort...

• Word Count: 1664
• Approx Pages: 7
• Has Bibliography
• Grade Level: Undergraduate

In fact, trading of HK$ relates very much to the confidence of local people & investors since if they worry about the future and withdraw capital from HK, then the government will have to spend heavily from its foreign exchange reserves to buy up HK$ in the market to support the rate. ... PROS Cushion an economy against shocks The link has proved its resilience against waves of shocks: 1987 stock market shock, the June 4 crackdown in 1989, 1990 Gulf War, the collapse of BCCI in 1992, Mexican currency crisis and the most severe one, the currency crisis in Asia in mid and late 1997. ... Ho...

• Word Count: 1827
• Approx Pages: 7
• Has Bibliography
• Grade Level: High School

Weaknesses in Asian economies were exposed, as investors dumped the local currencies for U.S. dollars. Banking and financial systems were on the brink of collapse, and stock markets in Asia plummeted. ... Investors could not easily reach money from government bonds, and foreign investors realized the country was in economic turmoil. ... Foreign investors left the country, and the Central Bank no longer used reserves to back the real. ... CONCLUSION It is not a surprise that foreign investors left Brazil at the first signs of trouble. ...

• Word Count: 1759
• Approx Pages: 7