The following is an outline of certain potential benefits as well as costs associated with the cross-border listings of stocks:
(i)- the company can expand its potential investor base.
(ii)- issues involving the disclosure and listing requirements.
(iii)- creates a secondary market for the company's shares.
(iv)- volatility spillover from the overseas markets.
(v)- liquidity.
(vi)- control of the company by foreigners.
(vii)- enhances the visibility of the company's name and its products in foreign marketplaces.
-Which of the following represents all the potential benefits of the cross-border listings of stocks?
A) (i), (ii), and (iii)
B) (ii), (iv), and (vi)
C) (i), (iii), (v), and (vii)
D) (iv), (v), (vi), and (vii)

Question

Quizplus · Accepted Answer

Option (i) talks about the increased potential investor base, (iii) creates a secondary market, (v) signifies improved liquidity, and (vii) enhances the name and product visibility of the company in foreign markets. Hence, option C comprises all the potential benefits of cross-border listings. Option (ii) includes issues concerning disclosure and listing requirements in addition to control of the company by foreigners, and volatility spillover from overseas markets. Option (iv) includes all the potential costs, while option A includes only the first three benefits. Therefore, option C is the best choice.

The Following Is an Outline of Certain Potential Benefits as Well