Which of the Following Statements About Listing on a Stock

question 6

Multiple Choice

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

• A) any firm can be listed on the nyse as long as it pays the listing fee.
• 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 sec.
• D) the otc is the second largest market for listed stock, and it is exceeded only by the nyse.
• E) listing is a decision of more significance to a firm than going public.

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Definitions:

Working Capital

A measure of a company's liquidity, operational efficiency, and short-term financial health, calculated as current assets minus current liabilities.

Revenues

The total income generated from normal business operations and includes discounts and deductions for returned merchandise.

Incremental Cash Flow

The additional cash flow generated by a company from a new project or investment, used for analysis of its viability.

Capital Budgeting Analysis

A process that involves evaluating and comparing the financial impacts of long-term investments to choose the most profitable ones.