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:

Retained Earnings

Profits that a company chooses not to distribute as dividends to shareholders but instead reinvests in the business or keeps as reserve.

Depreciation

A technique for distributing the expense of a physical asset across its lifespan.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.

Common Stock

Type of equity ownership in a corporation, entitling holders to vote at shareholder meetings and to receive dividends.