Identify five barriers to “cross-border” listing.

CPA-Financial-Management-Section-3 Revision kit

Barriers to cross-boarder listing
• Legal issues regarding restrictions imposed host government
• Disclosure requirements for firms entering into new stock markets.
• Previous trading record is usually required in many strong foreign exchanges.
• Requirement for a particular percent of shares to be in hands of the public.
• Minimum share price or market capitalization rules.
• Strict discipline rules e.g. no making management changes before informing the Capital Market Authorities

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