Which of the following statements best describes listing on a stock exchange?
A)Listing is a decision of more significance to a firm than going public.
B)Listing provides a company with some "free" advertising, and it may enhance the firm's prestige and help it do more business.
C)Listing reduces the reporting requirements for firms, because listed firms file reports with the exchange rather than with the security commission.
D)The OTC is the second largest market for listed stock, and it is exceeded only by the TSX.

Question

Quizplus · Accepted Answer

Listing on a stock exchange provides a company with some "free" advertising, and it may enhance the firm's prestige and help it do more business. While going public is a significant decision for a firm, listing on a stock exchange is not necessarily more significant. Listing actually increases reporting requirements for firms, as they must file reports with both the exchange and with the securities commission. The OTC is not a market for listed stock, as it mostly consists of unlisted securities. The TSX is the largest stock exchange in Canada, but this statement does not provide any relevant information.

Which of the Following Statements Best Describes Listing on a Stock