Could investors soon be buying shares in companies listed on a Welsh bourse?
An investigation is to be carried out into the possibility of creating a Welsh stock market. Professor Robert Huggins from the Centre for International Competitiveness at the University of Wales Institute is to study the issue to find out whether Welsh firms support the idea.
The Welsh Assembly government has provided a grant of almost £13,000 for the research as part of a wider scheme to plug gaps in the country's knowledge base. First minister Rhodri Morgan said he looks forward to seeing the outcome of the investigation.
Professor Huggins claims regional economies, particularly those in Wales, would benefit from the creation of a stock market outside of London. An equities exchange in Wales would boost the country's financial services industry. It would also open up new opportunities for investors interested in the potential returns on offer from companies listed there.
Indeed, Professor Huggins points out that listing on a Welsh bourse would be cheaper than listing on a London exchange, which would be more cost-effective for many smaller companies and start-up businesses, the BBC reports.
The backing of the research project comes as the Welsh Assembly is examining ways to get more Welsh companies listed on the London stock exchange by fostering a culture of entrepreneurship.
