In addition to gaining liquidity, which of the following could also be considered a legitimate reason for cross-listing equity?
A) enhance a firm's local image
B) become more familiar with the local financial community
C) get better local press coverage
D) all of the above

Question

Quizplus · Accepted Answer

Both A, B, and C can be considered legitimate reasons for cross-listing equity. Cross-listing equity can enhance a firm's local image by demonstrating that the company is large and successful enough to be listed on multiple exchanges. Cross-listing can also help the firm become more familiar with the local financial community and improve press coverage, which can benefit the firm in terms of gaining investors and improving its reputation.

In Addition to Gaining Liquidity, Which of the Following Could