International listing enables companies to trade its shares in numerous time zones and multiple currencies. Do you agree with this statement ? What are the benefits of international listing?

Answer 6(c) Yes. International listing enables a company to ensure trading of its shares in numerous time zones and multiple currencies. This increases the issuer company's liquidity and gives it more flexibility to raise capital. Some of the benefits of international listing are mentioned hereunder: Increased Market Liquidity International listing enables companies to trade its shares in numerous time zones and multiple currencies. This increases the issuing company's liquidity and gives it more ability to raise capital. Market Segmentation Market segmentation is the practice of dividing a large market into clear segments with similar needs. International listing enables firms to divide foreign investor markets into segments which are easy to access. Companies seek to list internationally because they anticipate gaining from a lesser cost of capital. This arises because their stocks become more available to foreign investors. Their access to these stocks may otherwise be restricted due to international investment barrier. Capital needs and growth opportunities Companies in emerging markets need to use international listing to raise capital to continue to grow beyond their home market. Wider Investor base International listing provides access to a larger pool of potential investors (both retail and institutional). Wider shareholder base is less risky. Better Investor Protection Companies need to comply with the provisions of all the regulatory aspects of the listing of those countries, where sought to be listed. Investors will therefore find themselves more protected and comfortable to invest in these companies. Secure Clearing A stock exchange provides a reliable and secure clearing mechanism. Listing on a foreign stock exchange is possible only after creating robust and advance clearing system. Other benefits Higher visibility/brand awareness, increased opportunities for mergers and acquisitions, entering markets with better investment protection reduces costs and creates bonding (a signal of corporate governance).