Globalization Effect on Stock Exchange Integration

During the last decade the financial markets have experienced major changes in regulatory, institutional, and economic prerequisites mainly because of the pressures from technological change, liberalization and globalization. This research is mainly concerned with explaining the pros and cons of stock market integration in the Mediterranean, as well as, discussing the impediments and prior factors of stock market integration. The main conclusion of this research shows that there is a high tendency towards the creation of new alliances among Mediterranean's exchanges and forming one big regional stock exchange through various forms of stock exchange integration. Finally, brief recommendations and suggestions are addressed to enhance and foster the Mediterranean stock market integration