What is a cross listing?

Cross list is when the company states its shares on two different exchanges. In most cases, this includes exchanges in two different countries, although it is possible on two in the same country. Although it can bring a wider group of potential investors, it can also increase management.

The most common form of a crosses includes a company that launches the primary list in its home country, then has a secondary list in another country. In some cases, this is because the company begins to do business in another country, for example, a Canadian company that extends to the United States and wants to better reflect it. In other cases, this is a tactical step based on increasing the takeover of the shares. This means that the company can take more money from new shares problems. It is also likely to increase liquidity in stocks, giving the company owners more flexibiles in their properties. As a result, the company can look more reliable and more trustworthy for potential investors. This is a special advantage for companies withHeadquarters in countries that require relatively few details in public fleets. The fact that these companies can then meet harder requirements, for example, the United States, can improve their international credibility.

There are several other minor advantages of the crosses. One of them is that companies benefit from twice the opportunities to attract media coverage. Another is that it is easier to take over a foreign company in an agreement where the payment is in stock rather than in cash. Crusaders also have the opportunity to issue shares as a form of bonus to employees working in the country.

There are several inherent disadvantages for a cross listing, mainly focusing on the need to go through the flotation process twice and then meet two different sets of ongoing requirements. For all companies it creates additional costs, both in direct expenditure and for internal administration. For companies that do notThey are thus well established or financially stable, the extracting process in the second company can bring an increased level of control that causes problems.