Why would a company want its stock cross-listed on the stock exchanges of several countries?
A) To make financial reporting less burdensome for its accounting firm
B) In order to use International Financial Reporting Standards
C) To gain access to more financial resources than are available in its home country
D) All of the above

Question

Quizplus · Accepted Answer

By listing its stock on several country's exchanges, a company can access more potential investors and financial resources than it could in its home country alone. This can lead to increased liquidity and a higher valuation for the company. Option A is incorrect as cross-listing may actually increase reporting burdens. Option B may be a reason for a company to conform to international accounting standards, but it is not the main reason for cross-listing.

Why Would a Company Want Its Stock Cross-Listed on the Stock