We have witnessed the effects first-hand of the on, then off, and then on-again flip-flopping exhibited by the New York Stock Exchange (NYSE) regarding the delisting of three Chinese telecom companies (China Mobile Ltd., China Telecom and China Unicorn Hong Kong). These ambiguous actions lack clarity and create uncertainty in the market pricing of these securities. As for blame- finger pointing abounds. All the while, it is the investor who feels the whiplash of the value of these securities and who has become the collateral damage in this waffling decision.
A pillar of investing rests in the efficient market hypothesis, which states that asset prices reflect all available information and stocks trade on the exchanges at their fair market value. While many factors contribute toward market pricing, there is one thing that causes market volatility and can wreck the value of a security- ambiguity. Investors beware when ambiguity is introduced into the actions of an exchange.
See the story below for more context. ~ Brian Kasal- The Leadership Matrix
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