The Following Is an Outline of Certain Potential Benefits as Well

question 18

Multiple Choice

The following is an outline of certain potential benefits as well as costs associated with the cross-border listings of stocks:
(i) - the company can expand its potential investor base.
(ii) - issues involving the disclosure and listing requirements.
(iii) - creates a secondary market for the company's shares.
(iv) - volatility spillover from the overseas markets.
(v) - liquidity.
(vi) - control of the company by foreigners.
(vii) - enhances the visibility of the company's name and its products in foreign marketplaces.
-Which of the following represents all the potential benefits of the cross-border listings of stocks?

• A) (i), (ii), and (iii)
• B) (ii), (iv), and (vi)
• C) (i), (iii), (v), and (vii)
• D) (iv), (v), (vi), and (vii)

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Definitions:

Income Statement

A financial report that summarizes a company's revenues, expenses, and profits/losses over a specific period of time.

Cash Flows

The inflows and outflows of cash and cash equivalents for a business, indicating its financial health.

Dividend Yield

A profitability ratio that measures the rate of return to common stockholders from cash dividends, computed by dividing the dividends per share of common stock by the market price per share of common stock.

Dividends Per Share

The amount of dividend a company pays out to its shareholders for each share owned.