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Why Translation Is Important to International Stock Exchange

Image: Unsplash

Image: Unsplash

Globalization of stock exchange markets is becoming a norm in all the major international stock exchanges. This fact has necessitated the need to localize financial statements and other collateral containing important information. 

As of March 2022, over 261 Chinese companies were listed on the US Stock Exchanges. This fact emphasizes the importance of laying strict document translation guidance on every document intended for public use.

As the Chinese government allowed cross-border stock listing, so did other countries with the largest Stock Exchange markets. 

How do stockbrokers and interested investors analyze the summaries of the financial statements written in foreign languages? 

To ensure accurate translation of Stock Exchange market annual, audit and online statistics, thousands of foreign Stock Exchange markets and Stock Brokers have turned to online human translation services.

What is Document Translation

Document translation is the conversion of written content from one language to another language either by use of software, apps or human beings.

Translation of financial and other documents used in the International Stock Exchange accurately is very critical. Stockbrokers and potential debenture or bond foreign buyers have to trust the localized financial reports are translated accurately before relying on them to make any decision.

The Security Exchange Act makes it mandatory for international stock exchange markets to disclose important information to individual shareholders, institutional investors and financial analysts. 

For the interested investors in other linguistics to analyze and understand the documents and securities on public offer, all the relevant documents have to be translated to different languages.

Advantages of Document Translation in the International Stock Exchange

image from Unsplash

Image from Unsplash

International companies joining both local and international stock markets have to analyze the market trends of the company trending stocks. Document translation is vital in keeping the two parties connected. 

Let’s now discuss why translation is important to the international Stock Exchange.

1. Break Linguistic Barrier 

It’s obvious for a company to share financial documents written in a local language when trading on the stock exchange. However, such documents create a linguistic barrier between the company and international interested parties. 

To enable foreign investors interested in the company stocks to understand and evaluate the strengths and weaknesses of the company, financial documents have to be translated into different languages to break linguistic barriers.

To facilitate the growth of international stock exchange markets, governments like the USA, India and China have made it mandatory for companies and forex brokers to translate their financial documents.

According to the Chinese rules and regulations on annual reports Distribution (HKEX Rulebook 18.03), 

2. Promote Company’s Brand Awareness

Among the most effective marketing strategies used by international companies trading in the major stock exchange markets to promote their brands’ awareness is translating their financial documents and portfolio into different languages.

To make foreign investors understand your company and promote its brand, you’ve to ensure everyone interested in your stocks, ETPs and bonds understands your offerings. 

Issuing documents translated into a language understood by the interested investors places the company on a global map. 

3. Reach New Target Audience

Financial documents written in a local language limit the audience to only people who understand the local language. Among the common business languages to make your company reach new and diverse target audiences include Spanish, Chinese, Arabic, French and Russian.

Since it’s simple to know the language spoken in every region of the world, translating documents into a language based on the target audience will attract more potential leads.

Until a new audience can understand the message in your financial documents, partnering with him/her is difficult.

4. Create Global Economy Links

Flows and associations greatly determine the growth and expansion of any company. The connections are commonly referred to as global economic links. Among the elements of economic globalization is stock market flows.

To trade shares in foreign stock markets, the financial documents have to be translated into languages that promote the creation of economy links.

Translation services are therefore critical in the international stock exchange to any company looking for economic links with foreign investors.

5. Promote Understanding Among the Interested Groups 

Translating documents into different languages promotes understanding among individuals and institutions from different linguistic groups. 

Mega companies willing to invest in international stock markets and international stockbrokers rely on translated documents to make understand foreign company’s financial status.

For investors to understand your company shares and their values, you’ve to seek the services of certified translator to translate the financial documents to be released on by other institutions and individuals. 

Wrap-Up

Document translation is important in international stock exchange as it helps promote brand awareness, create global economic links, reach new target audiences and promote understanding among interested individuals and international institutions.

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