The country which the company is targeted to expand its stock is France. ACME registers its shares on stock exchanges in France and the process is known as cross-listing. A cross-listing is used to ensure that the shares listed on each exchange are interchangeable with the shares traded on the other markets (Ghadhab & M’rad, 2018). France is a good option for expansion as it does not need specific requirements for foreign countries. Directors and officers are not required to reside in France. A listed foreign firm is not required to have a presence in France (for example, through resident directors or corporate offices). Any business records, such as a register of holders, are not required to be retained in France. Therefore, ACME can easily enter the stock exchange of France.
A specific size and market share of the securities to be listed are normally required. Another requirement is that the issuing company must be fundamentally financially viable. These guidelines are set by exchanges to safeguard their own credibility, reputation, and visibility. The minimum amount of equity held by shareholders, the minimum share price, and the minimum number of shareholders are among the listing conditions that differ by an exchange. Only top-notch securities are traded on an exchange due to requirements. To be cross-listed, a company must satisfy the exchange’s listing standards which ACME can easily compresence as France is not strict with the requirements. The ability for shares to trade in several time zones increased liquidity, and access to new capital are all benefits of cross-listing. Cross-listing does have drawbacks, too, including increased CEO pressure brought on by more public scrutiny, increased reporting and disclosure requirements, increased analyst scrutiny in advanced market economies, and higher listing fees.
Ghadhab, I., & M’rad, M. (2018). Does US cross-listing come with incremental benefit for already UK cross-listed firms. The Quarterly Review of Economics and Finance, 69, 188-204.