Canadian Securities Course (CSC) Level 1 Practice Exam

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What are the advantages and disadvantages of listing?

Promotion of exclusive products, Decreased market liquidity.
Enhanced market value, Simplified tax valuation, Market indifference.
Strict regulatory oversight, undisclosed financial information.
High costs, Restricted access to capital, Secrecy in operations.

The correct answer is: Enhanced market value, Simplified tax valuation, Market indifference.

The correct answer is B. Listing offers advantages such as enhanced market value, as the company's shares become more visible and accessible to a larger investor base. Additionally, listing can simplify tax valuation for shareholders. On the other hand, it does not entail market indifference, strict regulatory oversight, undisclosed financial information, high costs, restricted access to capital, or secrecy in operations, which are the disadvantages associated with listing.