Question

Foreign bonds have been an important instrument in the international capital market for centuries. In​ fact, a large percentage of U.S. railroads built in the nineteenth century were financed by sales of foreign bonds in​ _____.

Answer 1

In fact, a large percentage of U.S. railroads built in the nineteenth century were financed by sales of foreign bonds in Britain.

Explanation:

Foreign bonds are the traditional assets and involved in international bond market. These are traded in foreign countries and represented in currency of the same country.

The United States railroad construction initiated remarkable development during 19th century in U.S. economic and financial factors. The railroad projects were financed with the help of private capital markets, while 2/3rd of U.S. railroad securities was clutched by

British investors during World War-I and London was highlighted as major foreign listing venue for U.S. railroads. Analysis predicts that with 292 ordinary equity or foreign bond listings includes 193 U.S. railroads within 3 European exchanges.