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July 21, 2009

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Forex India

The size of the stock markets in my opinion depends on how much capital formation takes place through them. In US, stock markets play a major role in IPOs and capital formation whereas in China and other countries stock markets are primarily used for speculation and not much for capital formation. Most of the financing in these countries takes place through banks. I maybe wrong but this is my analysis.

Regards,
Jessica
jessica@ 4xindia.com

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