Cross-BorderListings ofStocksCross-border listings of stocks havebecome quite popular among majorcorporations.The largest contingent of foreign stocksare listed on the London Stock ExchangeU.S. exchanges attracted the next largestcontingent of foreign stocks
Cross-Border Listings of Stocks ❖Cross-border listings of stocks have become quite popular among major corporations. ❖The largest contingent of foreign stocks are listed on the London Stock Exchange. ❖U.S. exchanges attracted the next largest contingent of foreign stocks
Cross-BorderListingsofStocksCross-border listings of stocks benefit a companyin the following ways.1. The company can expand its potential investorbase, which will lead to a higher stock price andlowercostof capital.2.Cross-listing creates a secondary market for thecompany's shares, whichfacilitates raising newcapital in foreign markets.3.Cross-listing can enhance the liquidity of thecompany'sstock.4.Cross-listing enhances the visibility of thecompany's name and its products in foreignmarketplaces
Cross-Border Listings of Stocks Cross-border listings of stocks benefit a company in the following ways. 1. The company can expand its potential investor base, which will lead to a higher stock price and lower cost of capital. 2. Cross-listing creates a secondary market for the company’s shares, which facilitates raising new capital in foreign markets. 3. Cross-listing can enhance the liquidity of the company’s stock. 4. Cross-listing enhances the visibility of the company’s name and its products in foreign marketplaces
Cross-BorderListingsofStocksCross-border listings of stocks do carrycosts.1. It can be costly to meet the disclosure and listingrequirements imposed by the foreign exchangeand regulatory authorities.2.Oncea company's stock istraded inoverseasmarkets,there can bevolatility spillover fromthese markets.3.Once a company's stock is make available toforeigners, they might acquire a controllinginterest and challenge the domestic control ofthe company
Cross-Border Listings of Stocks Cross-border listings of stocks do carry costs. 1. It can be costly to meet the disclosure and listing requirements imposed by the foreign exchange and regulatory authorities. 2. Once a company’s stock is traded in overseas markets, there can be volatility spillover from these markets. 3. Once a company’s stock is make available to foreigners, they might acquire a controlling interest and challenge the domestic control of the company