Listing stock on a foreign stock exchange

Question

Quizplus · Accepted Answer

Listing a stock on a foreign stock exchange can enhance its liquidity as it increases the pool of potential investors. This could also increase the firm's perceived financial standing as it indicates that the company is expanding its reach and is seen as a reputable entity in other markets. Additionally, listing on a foreign stock exchange may protect a firm against hostile takeovers by making it more difficult for a single group of investors to gain control of the company's shares.

Listing Stock on a Foreign Stock Exchange