--%>

Source new equity capital from foreign investors

Give any benefits you can think of for any company to source new equity capital from foreign investors in addition to domestic investors.

An enhancement in demand will normally increase the stock price and develop its market liquidity. A broader investor base may also mitigate the possibility of a hostile takeover. Additional, 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 Management

  • Q : Explain the term PGARCH as of the

    Explain the term PGARCH as of the GARCH’s family.

  • Q : Advantages and disadvantages of

    Describe the advantages & disadvantages of closed-end country funds (CECFs) relative to the American Depository Receipts (ADRs) as a means of international diversification.CECFs can be utilized to diversify into exotic markets that are other

  • Q : What is Arbitrage Pricing Theory What

    What is Arbitrage Pricing Theory?

  • Q : Example of equilibrium model as Capital

    Explain the example of equilibrium model as Capital Asset Pricing Model.

  • Q : Define the term Leveraged Buy-Out or LBO

    Leveraged Buy-Out (LBO): It is a specific kind of acquisition in which the takeover of the controlling interest in a company is prepared by employing a noteworthy amount of borrowed capital from the banks and or capital markets. Inter

  • Q : Condition to reduce risk when exchange

    Would exchange rate alter always enhance the risk of foreign investment? Describe the condition under which exchange rate changes may in fact reduce the risk of foreign investment. Exchange rates changes require no

  • Q : What is Coherent Measure What is

    What is Coherent Measure?

  • Q : What are Implications of the normal

    What are Implications of the normal distribution for Finance?

  • Q : Describe condition for

    Describe necessary condition for a fixed-for-floating interest rate swap to be possible?For fixed-for-floating interest rate swap to be possible it is essential for a quality spread differential to be present. Generally, the default-risk premiu

  • Q : Risks confronting an interest rate and

    Depict the risks confronting an interest rate & currency swap dealer.An interest rate & currency swap dealer confronts several distinct types of risk. Interest rate risk refers to interest rates altering unfavourably before the swap dea