Define advantages for a firm to cross list its equity shares, Financial Management

Assignment Help:

Discuss any advantages you can think of for a company to

(1) cross-list its equity shares on much more than one national exchange,

(2) To source new equity capital from foreign investors also domestic investors.

Answer:  A MNC which has a product market presence or manufacturing services in various countries may cross-list its shares on the exchanges of these similar countries as there is typically investor demand for the shares of companies which are termed within a country.  In addition, a company may cross-list its shares on foreign exchanges to broaden its investor base and hence to increase the demand for the stock.  An increase in demand will usually increase the stock price and enhance the market liquidity.A broader investor base may as well mitigate the option of a hostile takeover. In addition, cross-listing a company’s shares establishes name recognition and so facilitates sourcing new equity capital in these foreign capital markets.


Related Discussions:- Define advantages for a firm to cross list its equity shares

Procedure of measurement of future value, Procedure of measurement of Futur...

Procedure of measurement of Future Value If we are getting a return of 10 % in one year then what is the return we are going to get in two years? 20 %, right. What about return

Straddle strategy, An options strategy by which an investor owns a position...

An options strategy by which an investor owns a position in both a call and put market with the same strike price and expiration date.

Compare diversifiable and nondiversifiable risk, Compare diversifiable and ...

Compare diversifiable and nondiversifiable risk. Which do you believe is more significant to financial managers in business firms? Actually Diversifiable risk can be dealt with b

How are financial trades made on an organized exchange, How are financial t...

How are financial trades made on an organized exchange? Every exchange-listed security is traded at a precise location on the trading floor called the post. The trading is mana

Assignment, how I can use this website?

how I can use this website?

Compute the interest, (a) These are merely the differences of the two pric...

(a) These are merely the differences of the two prices. Consequently the mark to market losses are given by { Q 1 - Q 0 ,Q 2 - Q 0 ,Q 3 - Q 0 ,Q 4 - Q

Define the price and earning ratio valuation method, Define the P/E valuati...

Define the P/E valuation method. Under what circumstances should a stock be valued using this method? The P/E ratio points out how much investor are willing to pay for each dol

Financial and economics evaluation, An offer given by charitable trust to d...

An offer given by charitable trust to develop and build a facility on a 10000 sqmt of plot in a prime locality of pune where 5000 sqmt of area will be used by the trust for housing

Aligning financial reports, Aligning Financial Reports: The primary pur...

Aligning Financial Reports: The primary purposes of financial systems are to provide information to interested parties.  Any reports produced through the financial management p

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd