What Are the Costs of Cross-Listing

question 12

Multiple Choice

What are the costs of cross-listing?

• A) It exploits growth opportunities with additional foreign capital.
• B) It reduces the cost of capital.
• C) It increases the stock price.
• D) It costs money paid in exchange fees and it may impose a high level of examination on the company's managers.

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Definitions:

Forward Contract

A customized contract between two parties to buy or sell an asset at a specified price on a future date.

Gross Method

An accounting practice where purchases are recorded at their gross price, without deducting any discounts, which are recorded if and when they are received.

Exchange Rates

The rate at which one currency can be exchanged for another currency, influencing international trade and finance.

Settlement Date

The date on which a trade or transaction must be finalized, with the buyer delivering payment and the seller transferring ownership of the asset.