FINANCIAL MARKETS Good day, Below is the assignment, i have attached the previous milestones. This final paper is a continuation from the previous milestones. thank you 7-2 Final Project Submissio

ORGANIZED EXCHANGES 0

Organized stock exchanges provide companies with an avenue to assess the deep pockets of investors from around the world. However, these exchanges are not the same, and they differ in size, trading volume, and regulations. Therefore, companies evaluate different exchanges before choosing the one that best suits their needs. However, the company can only be listed if they meet the exchange's listing requirements. The reputation of major stock exchanges depends on the companies allowed to trade on their platforms. Reputation attracts investors to the exchange. Thus, the exchanges only consider listing companies that meet specific requirements such as quality management, solid financial history, etc. The exchanges also monitor the companies trading on their platforms to ensure transparency and accountability and protect investors' money. The Securities and Exchange Commission (SEC) is a federal agency that monitors and regulates the trading of securities in the United States (Karmel, 2009).

Bumble Inc. chose to be listed on NASDAQ for reasons best known to its executives. NASDAQ requires all companies seeking to be listed on the platform to adhere to the U.S Securities and Exchange Commission (SEC) regulations. In addition, the firm must follow Marketplace Rules for Nasdaq listing, including the 4350, 4351, and 4360 corporate governance rules. Companies listed on NASDAQ must have a minimum number of publicly traded shares (1,250 000 in 2022) during the IPO launch, excluding those owned by directors and other parties closely associated with the company. NASDAQ charges the company a fee based on the number of shares issued to investors on the platform. This figure currently ranges between one hundred thousand and one hundred and fifty thousand dollars. The shares must also be sold above a minimum agreed price ($4.00 in 2022). The platform also charges application fees of between five thousand to twenty-five thousand dollars depending on the type of securities listed and the company's size. NASDAQ also charges other fees such as annual listing fees, record-keeping fees, and fees for issuing additional shares.

NASDAQ also has strict financial standards that cover significant aspects such as the company's earnings, capitalization, and assets. The company must maintain these standards to continue trading on the platform, and failure to meet them results in delisting. The most common cause for delisting share prices falling below the minimum and market capitalization. Organized exchanges in the United States such as the NASDAQ and NYSE attract companies in the U.S. and outside. These exchanges have several advantages over other major exchanges in the world. This includes large market capitalization, massive trading volumes, credibility, and ease of doing business.

Non-US companies seeking a listing on the NASDAQ must follow all requirements mentioned above. In addition, they must adhere to other standards enforced by the SEC. For example, in August 2021, the SEC approved new listing standards for NASDAQ to promote diversity. The requirement mandates non-US companies listed on NASDAQ to have at least two diverse members in their governing board and disclose their diversity efforts every year.

The London Stock Exchange (LSE) is one of the largest and oldest stock exchanges globally (Michie, 2001). Physical trading occurs in the city of London, United Kingdom, but the advancement of technology and favorable laws has seen the LSE move towards online trading. The LSE lists thousands of companies from more than fifty countries worldwide. The LSE is an attractive avenue for multinational companies planning to join the capital market. The exchange is often used as the benchmark for prices and market data for companies operating in Europe. In addition, the LSE seeks to eliminate regional trading barriers and promote global capital markets trade and has partnered with major exchanges in Asia and Africa.

Companies that want to be listed on the LSE are approved by the Financial Conduct Authority (FCA) through the United Kingdom Listing Authority (UKLA). After approval by the FCA, the LSE then admits the company to its main market for trading. London Stock Exchange is responsible for the admission to trading of companies to the Main Market. The FCA regulates trading on the platform, and all listed companies must comply with the Rules of the London Stock Exchange ("the rules"). U.S. companies that want to be listed on the LSE can access the listing requirements from the LSE's official website or trusted parties in the capital market industry, such as the PwC group (PwC, 2012).

Bumble Inc. could have chosen to trade on the LSE instead of the NASDAQ. The LSE is more prestigious and gives companies listed on its platforms a blue-chip status than the NASDAQ. However, the perception that only the NYSE and LSE have successful companies has slowly changed due to the presence of several successful blue-chip companies in the NASDAQ platform, such as Apple, Google, and Microsoft. Choosing the NASDAQ presented the company with several advantages. First, technology companies have traditionally done well after listing on NASDAQ, and Bumble Inc. followed this trend and exceeded its expectations on their first trading day. Second, the U.S. capital market is more prominent and thus has higher trading volumes than the United Kingdom and the E.U. The NASDAQ also has fewer listing fees and lower listing requirements than traditional exchanges such as the LSE. Bumble Inc.'s decision to list only on NASDAQ was the best. The company raised twice the expected capital on its first trading day.

The Bank of England sets interest rate policies in the United Kingdom. The goal of the policies is to keep inflation low and stable within the country. The Bank of England primarily uses two monetary tools to control inflation in the U.K. The first one is setting a specified bank rate that applies to all financial institutions that borrow from the Bank of England. The bank also buys bonds to lower interest rates on loans through quantitative easing (Q.E.). On the other hand, the Federal Open Market Committee sets interest rates in the U.S.

Karmel, R. S. (2009). The Future of the Securities and Exchange Commission as a Market Regulator. U. Cin. L. Rev., 78, 501.

Michie, R. (2001). The London stock exchange: A history. OUP Oxford.

PwC (2012). Listing in London A guide to premium and standard listings of equity and flotation on AIM. PWC capital markets. https://www.pwc.com/mn/en/capital-markets/assets/mn_successful_listing_in_london_eng.pdf