What are the benefits and challenges for a firm to be listed and traded on ASX?

Expert Solution

Benefits of firms for listed and traded in Australian Stock Exchange-

A. it will be helping this Firms in order to generate higher amount of equity capital from the market.

B. It will also help this firms in order to you have high amount of liquidity in their shares and they can easily sale shares in order to generate more capital.

C. It will also help this Firms in order to expand their reach and increase the marketplace as business will be gaining reputation after it has been listed on the stock exchanges.

D.it will also help in raising of capital through further offers like right offers and bonus issue can also be done through the stock exchange

E. it will also help this company in order to maximize the value of the shareholders and increase their market capitalisation.

F. It will also help this Newer company to have a reach to the other market as well

Challenges associated with the listing on the Australian stock exchanges-

A. there will be higher regulations and higher documentations which would be followed by these companies.

B. There will also be a cost related to initial public offering in case of underwriting and underpricing

C. companies will be required to reveal more of their information as public informations and they will have to disclose their quarterly earnings on the stock exchanges.

D. They will also be regulated strictly by various shareholders and they will have to follow by various investor interest protection norms

jeff jeffy answered 1 year ago

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What are the benefits and challenges for a firm to be listed and traded on ASX?

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