Question

• Would you consider investing in stocks or firms in Mexico?
• Do you believe that shareholder rights and accounting laws have encouraged the development of the stock market in this country? Explain.

Answer 1

1. Yes, I will be considering investment in stocks or firms in Mexico because of following reasons-

A. Mexico is a highly underpenetrated economy and there is a scope for high growth.

B. Mexican economy will also have an advantage of investment into emerging Market sector

C. it will also have the advantage of sharing cross borders with United States of America and many of the American company have mergers with the maximum companies

D. Mexico also provides with the liberal Regulation and scope for maximization of the return on capital invested.

E. Mexico will also have the advantage in relation to less economic instability and less political uncertainty.

2. Yes, I do believe that shareholders right and economic laws has encouraged the development of stock market and it had tried to protect the interest of the shareholder to a large extent by formation of the disclosure norms and all such regulations that are majorly inclined towards detection of the fraud and making the shareholders aware of public disclosure norms along with making the company responsible for any kind of fraud and management are also regulated through proper mechanism which eliminate the possibility of insider trading and fraud.