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 costs 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

The potential costs of cross-border listings include issues involving the disclosure and listing requirements (ii), volatility spillover from overseas markets (iv), and the potential for foreigners to gain control of the company (vi). Option A only includes (i), (ii), and (iii), option C includes (i), (iii), (v), and (vii), and option D includes (iv), (v), (vi), and (vii), but not (ii). B is the only option that includes all three potential costs.

The Following Is an Outline of Certain Potential Benefits as Well