Several years ago the Danish equity market prohibited ownership of foreign securities thus few institutional analysts outside of Denmark bothered to follow Danish equity securities. This particular fact led to market segmentation due to

Question

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The fact that foreign securities were prohibited led to asymmetric information, as few analysts outside of Denmark were following Danish equity securities. This created a segmentation of the market in terms of information available to investors. Taxation, political risk, and financial risk do not seem to be directly relevant to this particular situation.

Several Years Ago the Danish Equity Market Prohibited Ownership of Foreign