Question

Discuss the advantages of listing a corporation on the stock exchange, such as the ASX?

Answer 1

STOCK EXCHANGE

Stock exchange is the market place where stocks and securuties available for transaction.it is the place where shares of public listed companies traded. stock exchange normally fesilitate brokers to trade  the stock of the registerd company. simply stock exchange provide a secure place to trasfer share oif the listed companies. early days it was the meeting place of share traders and buyers and now it completely electronic and online based.

World fmous stock e\xchanges are given bellow

1.NYSE-USA

2.NASDAQ

3.JPX- JAPAN

4.LSE-UNITED KINGDOM

5.SSE -CHINA

6.ASX- AUSTRALIA

ADVANTAGES OF LISTING A CORPORATION ON THE STOCK EXCHANGE

1.ACCESS TO CAPITAL FOR GROWTH

A listing gives you the opportunity to raise capital at the IPO stage and, throughout your listing to fund future growth.

·2.CURRENCY FOR EXTERNAL GROWTH

Listing Facilitates acquisitions by providing ‘currency’ in the form of a more diversified and liquid share capital base.

3.HIGHER PUBLIC AND INVESTOR PROFILE

It help to Heightens your company profile with the media, analysts and the industry at large, helping sustain demand for your company’s shares.

4.INSTITUTIONAL INVESTMENT

Listing Attracts institutional investment due to increased transparency and trading liquidity, thereby increasing credibility and access to capital of the firm

5.IMPROVED VALUATION

Listing Helps generate independent valuation by the market based on available information.

6.GREATER EFFICIENCY

It Leads to greater operating efficiency of corporate business due to ongoing reporting requirements and more rigorous disclosure.

7.SECONDARY MARKET FOR YOUR COMPANY’S SHARES

Stimulates liquidity in your company’s shares enabling shareholders to realize the value of their holdings and by facilitating further capital raising.

8.ALIGNMENT OF EMPLOYEE/MANAGEMENT COMMITMENT

Provides you with the option of remunerating your employees with shares, thereby aligning their interests with organizational goals.

9.REASSURANCE OF CUSTOMERS AND SUPPLIERS

Improves perception of your business strength due to the rigorous due diligence of the listing process and ongoing compliance procedures.

listing in a stock exchange provide a new window to business. it help to raise more capital to company ind also make improve reach to the public.through public offering company can make a face in front of the public it increase the growth rate and goodwill of the company for long time.

for listing in stock exchange a company or corporation need to satisfy basic conditions and public offering reduce decision making power of the company