Junior stock exchanges as an instrument of small technology-based firms support

The article analyses the concept of alternative capital markets (junior stock exchanges) and discusses in which way these stock exchanges are able to stimulate innovation. The author comes up with the concept of a junior stock exchange and determines it as such a segment of a major stock exchange, which motivates small technology-based firms to obtain financing via IPO through lowered requirements and support in different areas from government or exchange itself. Thereafter the article defines quantitative and qualitative characteristics and compares existing junior stock exchanges with each other and major stock exchanges based on these characteristics. Finally, author makes a conclusion that even though junior stock exchanges tend to be inferior in terms of quantitative characteristics, such exchanges may serve as an instrument of support of small technology-based firms due to specific kinds of support of such companies: informational, marketing and financial support and lower entry barriers

Keywords: small technology-based firm, IPO, capital markets, stock exchanges, junior stock exchanges


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