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Essay Question # 1 Consider a firm listed on Toronto Stock Exchange (TSX) since 1990. Explain...

Essay Question # 1 Consider a firm listed on Toronto Stock Exchange (TSX) since 1990. Explain why the stock price of the firm will increase when it announces that it will list on New York Stock Exchange (NYSE) as well starting from January 31st, 2021. Please limit the length of your answer to a maximum of 10 lines.

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Answer #1

When a firm is already listed on one stock exchange and it is announcing that it will get itself listed on the another stock exchange, then the price of the company is going to go up because it will mean that the company is trying to get a global exposure and the company will be providing more public disclosure and the company would also be able to generate more borrowing capacity and an international reputation also, so there would be a large number of international investors also analysing the performance of the company and the company is also trying to expand itself into the Global markets so it will help in discounting of all the positivity into the stock prices and it will lead to a positive movement into the stock prices.

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