Why Would a Company Want Its Stock Cross-Listed on the Stock

question 46

Multiple Choice

Why would a company want its stock cross-listed on the stock exchanges of several countries?

• A) To make financial reporting less burdensome for its accounting firm
• B) In order to use International Financial Reporting Standards
• C) To gain access to more financial resources than are available in its home country
• D) All of the above

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Definitions:

Bondholders

Investors or entities that hold debt securities, especially bonds, issued by corporations or governments, entitling them to interest payments and the return of principal.

Issuing Corporation

The company or entity that offers securities, like stocks or bonds, for sale to investors in order to raise capital.

Creditors

Individuals or entities to whom money is owed by another individual or entity, typically due to a loan or credit arrangement.

Bond Discount

The difference between the face value of a bond and its selling price, when the bond is sold for less than its face value.