A multinational firm that proceeds to raise capital outside of its domestic market is ultimately in search of an issuance - the IPO or SPO. But often issuances must be preceded by listings, in which the shares are traded on an exchange and, therefore, in a specific country market. The listing serves the following purposes EXCEPT:

Question

Quizplus · Accepted Answer

While gaining name recognition, visibility, and preparing the market for an issuance are all reasons for a multinational firm to pursue a listing on an exchange, reducing compliance costs is not typically a primary motivation. In fact, listing on an exchange often increases compliance costs for the firm, as it must adhere to regulations and reporting requirements of the exchange and the country where the exchange is located.

A Multinational Firm That Proceeds to Raise Capital Outside of Its