Capitalization I: Market and Etf Purchases

capitalization i: In secondary trading, they assessed that pricing showed the purchases weren't making the market less liquid, according to The Japan Times. The conclusion we are making is that the liquidity of the market is not really impacted, said Frank Benzimra, head of Asia equity strategy at Societe Generale in Hong Kong, who was part of a team that analyzed the ETF purchases in an April report. While the BOJ held about three-quarters of the assets of Japanese exchange-traded funds as of earlier this year, that still amounted to just 3 percent of the stock market's capitalization, according to Societe Generale estimates. I don't think there has been any real distortion in market prices, he also said. A smaller premium would make it less costly to issue stock, giving companies greater firepower for investment spending. ETF purchases were designed to complement the BOJ's broader monetary stimulus, by shrinking the equity risk premium, or the theoretical extra return investors demand from a stock compared with the so-called risk-free rate offered by government bonds. (news.financializer.com). As reported in the news.