Which of the Following Statements Best Describes Listing on a Stock

question 25

Multiple Choice

Which of the following statements best describes listing on a stock exchange?

• A)Listing is a decision of more significance to a firm than going public.
• B)Listing provides a company with some "free" advertising, and it may enhance the firm's prestige and help it do more business.
• C)Listing reduces the reporting requirements for firms, because listed firms file reports with the exchange rather than with the security commission.
• D)The OTC is the second largest market for listed stock, and it is exceeded only by the TSX.

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Definitions:

Demand Function

A mathematical formula representing the relationship between the quantity of a good consumers are willing to buy and the price of the good, alongside other factors like income and the prices of related goods.

Total Revenue

The total income generated from the sale of goods or services before any costs are subtracted.

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a good to a change in its price.

Demand Function

An equation that describes the quantity of a good or service demanded at different prices.