chapter  9
Equity securities, organized exchanges and corporate governance
Pages 59

As commonplace as debt and equity instruments are to developed fi nancial systems, their respective narratives are remarkably different. One important result is that fi nancial innovation since the Bretton Woods era varies considerably in form and impact between the two sectors, wherever it is observed and regardless of the transaction location’s variety of capitalism. Innovation and fi nancial development in loans and bonds centres on contracts, transaction types and commercial responses to regulation, and barriers between markets; similar factors infl uence equities to a far lesser extent. Innovation in share trading and issuance is focused overwhelmingly on the organized exchange as the forum for those activities, so that the setting rather than the transaction dictates commercial strategies and outcomes.