--%>
Assignment Help - homework help

Benefits for a company to cross-list its equity shares

Explain the benefits you can think of for a company to (a) cross-list its equity shares on more than one national exchange, and, (b) to source new equity capital from foreign investors as well as domestic investors.

E

Expert

Verified

A MNC which has a product market presence or manufacturing facilities in various countries may cross-list its shares on exchanges of these same countries since there is typically investor demand for the shares of companies which are known within the country.  Moreover, a company may cross-list its shares on the foreign exchanges to broaden its investor base and thus, to increase the demand for the stock.  This rise in demand will generally increase the stock price and advances its market liquidity. Broader investor base can also mitigate the possibility of the hostile takeover.  Moreover, cross-listing a company’s shares establishes name recognition and thus facilitates sourcing new equity capital in these foreign capital markets.

   Related Questions in Financial Accounting

  • Q : Accounting profit Normal 0 false false

    Normal 0

  • Q : Categories under budgets are divide

    Write down the chief categories under which budgets are divided?

    		•
  • Q : APV capital budgeting framework How APV

    How APV capital budgeting framework is useful for analyzing the foreign capital expenditures?

    		•
  • Q : Need for valuing goodwill Need for

    Need for valuing goodwill: If the mutual rights of the partners modifies then the party which makes a sacrifice should be compensated. This basis of compensation is goodwill therefore we require calculating goodwill. Mutual rights change beneath follo

    		•
  • Q : Forecast future and forward exchange

    It is extremely difficult in order to forecast future exchange rates more precisely as compared to forward exchange rate or to the current spot exchange rate, as per the researchers. How these findings can be interpreted?

    		•
  • Q : Prepare journal entry to record

    On December 31, 20x1, the Juniper Company purchase a group of four assets for a total cost of $850,000. An independent appraiser assesses the fair value of each asset as follows: Asset Fair Value Land $100,000 Building 600,000 Equipment 250

    		•
  • Q : Uncertainty in dollar/franc exchange

    Suppose that your company has an equity position within the French firm. Explain some of the condition under which the dollar/franc exchange rate uncertainty does not have the exchange exposure for your company.

    		•
  • Q : Euro-medium-term-note market State

    State difference between the Euro-medium-term-note market, the Euro note market, and the Euro commercial paper market?

    		•
  • Q : Benefits for a company to cross-list

    Explain the benefits you can think of for a company to (a) cross-list its equity shares on more than one national exchange, and, (b) to source new equity capital from foreign investors as well as domestic investors.

    		•
  • Q : What is Bankers acceptance What is

    What is Bankers acceptance and what is its role?

    		•