Good Article Review About Finance Management Article Review

The paper looks at the UAE stock exchange industry and the mergers between DFM-ND and ADX. The article further evaluates the risks and the business implications. According to the article, the security exchange market has grown to be a potential investment for many people in the world. Large players in the market such as the NYSE look at mergers with smaller security exchange markets in order to boost their revenues. The public stock exchanges have moved to acquire models that are for increased profits and cost effectiveness. As a result, there has been a growth in competition between the global security exchange markets.
The article further suggests that the move by some of the major stock exchange markets in the world to seek mergers resulted to the Arab market exchanges pursuing the internal growth strategies that needed cross-border consolidation with other stock markets. As a result, there was a merger between DFM-ND and ADX. The article suggests that the mergers were a bad option for the region stock exchange due to the weak economic policies of the Middle East and North African countries. The three mergers suffered a financial crisis due to market fragmentation. The author looks at the collapse in trade volumes and trade values as some of the major results of the merger. According to the article, market capitalization within the securities exchange markets drastically suffered a drop.
The article thus shows how much the financial markets of the UAE suffered from the security market mergers. On the other hand, the article looks at the merger as a source of strength were it to work correctly. The merger among the three stock markets could have created a source of strength for the markets and their growth could have been rapid. The article looks at the merger as a way in which the UAE would have connected by sparkling mergers across industries. The benefits thus would have outweighed the challenges since there could be more Regional Corporation between the Abu Dhabi and Dubai.
The paper thus illustrates that the mergers in stock exchanges across the globe are important to developing stronger financial markets. Stock markets have now focused in market capitalization and gaining profits which is important for development. A merger between stock markets is thus important in ensuring that the competitiveness continues to grow and there is an influence in the development of a country’s markets in general.
The article has thus provided a detailed explanation to the readers on the impact of the security market merger in the United Arab Emirates in terms of the negative effects. Readers would easily understand the risks that are involved in stock market mergers and the benefits that can be accrued from the mergers. The article has thus provided an important platform for the readers to understand where failure occurred and the weakness of the region with relations to mergers and acquisitions.
The article has failed to look at the issue in detail since the emerging market security exchanges are important and need a wide research. The article failed to provide the wide research on them and use their significance to the developed market stock exchanges. Additionally, the article did not focus on cross-holding among developing and developed stock markets. Such dealings can lead to problems with regards to corporate governance among the markets.
In conclusion, the article has provided me with the knowledge with regards to the UAE securities exchange. Furthermore, the article has illustrated to me the understanding of competition in the global stock markets and the mergers and acquisitions that occur. The experience acquired by reading the article is important in developing a comprehensive understanding of the global stock markets.