Which of the Following Statements About Listing on a Stock

question 26

Multiple Choice

Which of the following statements about listing on a stock exchange is most correct?

• A) Listing is a decision of more significance to a firm than going public.
• B) Any firm can be listed on the NYSE as long as it pays the listing fee.
• C) Listing provides a company with some "free" advertising,and status as a listed company may enhance the firm's prestige.
• D) Listing reduces the reporting requirements for firms,because listed firms file reports with the exchange rather than with the SEC.
• E) Statements b and c are both correct.

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Definitions:

Fixed

Expenses that remain constant for a period of time and do not vary with production levels or sales volume.

Specified Levels

Predetermined benchmarks or criteria that need to be met within certain contexts, such as quality standards or performance thresholds.

Hedging

A risk management strategy used to reduce or limit potential losses by taking offsetting positions in related securities or derivatives.

Price Fluctuations

Variations in the market prices of goods, services, or securities within a particular period.