In Addition to Gaining Liquidity, Which of the Following Could

question 39

Multiple Choice

In addition to gaining liquidity, which of the following could also be considered a legitimate reason for cross-listing equity?

• A) enhance a firm's local image
• B) become more familiar with the local financial community
• C) get better local press coverage
• D) all of the above

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Definitions:

Economic Expansion

A phase in the business cycle where an economy experiences growth in its GDP, income, and employment, leading to increased prosperity.

Federal Budget Deficit

The shortfall when the federal government's expenditures exceed its revenues in a fiscal year.

Fiscal Year

A fiscal year is a one-year period that companies and governments use for financial reporting and budgeting, which doesn't necessarily align with the calendar year.

Automatic Stabilizers

Economic policies and programs that automatically adjust to counteract economic fluctuations without the need for explicit government action.