Cross-listing also known as cross border listing is when a company list its securities on one or more foreign exchanges in addition to domestic exchange. Publicly held companies still trading in the U.S. undertake listings on overseas exchange for variety of reasons. Simply put, no company would do it if it didn't bring some benefits and indeed there are plenty of them.
Cross border listing broadens shareholders base and enhance your visibility among overseas investors. Actually it is also beneficial for investors that can get a chance to diversify their portfolio especially in sectors that are not available on the local stock market. This way investors can invest in U.S. company and trade locally.
This is a great way to attract new capital so you can decide to raise debt or equity. Additional funds can be used to grow and expand your business even more. Since there is usually difference in time zones this enables company to trade its stock a longer time.
Diversification of company's shareholders spreads financial risk, reduce volatility and increase liquidity. Together with shift in order flow and trading activity benefits most investors in that way positively affecting the share price and value of the company. In this way overall investment risk for shareholder is reduced.
Opportunity to promote company brand, services and products to potential investors also means that company will improve public relation and therefore improve shareholders relations and attract new investors.
Being cross listed can enhance your company's status as a truly global player ad give you chance to tap retail and institutional funds.
Mina Mina Group is here to help you in cross listing your company. As always we will be with you every step of the way! Contact us for additional information - MinaMarGroup.com
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