Philippine E-Journals

A Study of the Demutualization of the Philippine Stock Exchange and its Effect on Stock Return Volatility

Leila Y. Calderon

Discipline: Economics, Business

 

Abstract:

Stock exchanges all over the world are introducing new ways to increase their capitalization. One of this is through demutualization, where the stock exchange is converted to stockholder based organization for profit taking. The earliest known demutualized stock exchange is in Stockholm in 1993. Through demutualization, the exchange can raise additional capital through the initial public offering. Also, with a demutualized stock exchange, it can compete globally by offering more products and accessing other markets.