Euroequity

Definition of 'Euroequity'


Newly public companies that want to raise more money tend to issue this type of stock. Euroequity is a term used to describe an initial public offer occurring simultaneously in two different countries. The company's shares are listed in various countries rather than where the company is based. This method differs from cross-listing where company shares are listed in the home market and then listed in a different country. Euroequities are sometimes European securities sold on several national markets.

Also referred to as Euroequity Issue.

Investopedia explains 'Euroequity'


This occurs when a company decides to offer stocks during its IPO on more than one country's exchange. Two examples would be British Telecommunications and Gucci. These IPOs were simultaneously offered in the different markets by an international syndicate. A syndicate is an underwriters group that places new issues of a security.


Filed Under:

comments powered by Disqus
Hot Definitions
  1. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific benchmark, such as a SPDR. Unlike actively managed ETFs, passive ETFs are not managed by a fund manager on a daily basis.
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another market so that it balances out. So when examining a specific market, if all other markets are in equilibrium, Walras' Law asserts that the examined market is also in equilibrium.
  3. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following:
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.
  6. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious debt when government leaders use borrowed funds in ways that don't benefit or even oppress citizens. Some legal scholars argue that successor governments should not be held accountable for odious debt incurred by earlier regimes, but there is no consensus on how odious debt should actually be treated.
Trading Center