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 represent 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 of stocks include issues involving the disclosure and listing requirements (ii), volatility spillover from the overseas markets (iv), and control of the company by foreigners (vi). (i) and (iii) are potential benefits, and (v) and (vii) could be seen as either benefits or costs depending on the specific circumstances.

The Following Is an Outline of Certain Potential Benefits as Well