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Byline: Suvarn Valaisathien
Sep. 2--Prior to the economic crisis, financial and stock markets enjoyed a boom. Listed companies issued countless European Convertible Debentures or ECDs which foreign investors snapped up in the high hope that stock prices would continue to rise and more than compensate for the low coupon rates of the ECDs.
In addition, many companies rushed to offer their shares to the public with initial public offerings (IPOs) worth tens of billions of baht. Due to the huge number of IPOs and the sentiment at that time, the quality of listing companies might not have been carefully screened.
Then came the collapse of the stock market in 1997. Between early 1994 and early 1998, stocks lost 90 percent of their value overall. The crash was blamed on the burst of the economic bubble.
However, many parties involved in the market, whether they were financial advisers, securities brokers, underwriters, as well as auditors and executives of the issuing companies ...
Source: HighBeam Research, Bangkok Post, Thailand, Guest Column.