Which of the following statements about listing on a stock exchange is most CORRECT?
A) Listing is a decision of more significance to a firm than going public.
B) Any firm can be listed on the NYSE as long as it pays the listing fee.
C) Listing provides a company with some "free" advertising, and it may enhance the firm's prestige and help it do more business.
D) Listing reduces the reporting requirements for firms, because listed firms file reports with the exchange rather than with the SEC.
E) The OTC is the second largest market for listed stock, and it is exceeded only by the NYSE.

Question

Quizplus · Accepted Answer

Listing provides a company with some "free" advertising, and it may enhance the firm's prestige and help it do more business. This statement is the most correct among the given options. Option A is incorrect because going public is a significant event for a firm, as it entails the sale of shares to the public. Option B is incorrect because firms have to meet certain criteria to be listed on an exchange. Option D is incorrect because listed firms file reports with both the exchange and the SEC. Option E is incorrect because the OTC market is not an exchange, and it is not limited to listed stocks.

Which of the Following Statements About Listing on a Stock