Which THREE of the following statements about stock market listings are correct?
A.
The reporting requirements for listed companies are more onerous than those for private companies
B.
When seeking a listing to raise capital companies typically must ensure they include any costs of underwriting shares they need to issue.when determining the number of
C.
Listed companies may be viewed more favorably by suppliers and consequently granted more generous payment terms than private companies
D.
The increased scrutiny that applies to listed companies makes them less attractive to investors.
E.
A prerequisite to obtaining a listing is that a public company must reregister as a private company first.
The Answer Is:
A, B, C
This question includes an explanation.
Explanation:
A – True: listed companies face more onerous reporting and disclosure.
B – True: flotation planning must allow for issue/underwriting costs when deciding how much capital to raise.
C – True: listing can enhance reputation and credit standing, often improving supplier terms.
D – False: increased scrutiny usually reassures investors.
E – False: a company must become/remain a public company to list, not re-register as private.
Answer (Q118): A, B, C
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