Identify and explain six reasons why companies in your country may seek “cross- border” listing.

CPA-Financial-Management-Section-3 Revision kit

Why seek cross-boarder listing
• Raise debt or equity capital especially where funds available in domestic market are insufficient or more costly.
• Diversification and spreading risk creating increasing stability of share prices.
• Increase trading volume of shares since shares are offered in a wider market.
• Boost the company status as a truly global player.
• Correct valuation of shares since there are many market players with a wider market.
• Attract overseas investors and consumers and improving product/brand awareness in other markets.
• Improve shareholders relations.
• Tap retail and institutional funds.

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