Of course a company can be listed on two stock exchanges at the same time, but certain conditions must be met. That is, it is not in the same country or region, for example, we can only choose one of the mainland's SSE and SZSE, and can also be listed in Hong Kong, or on the stock exchanges of other countries.
The listing of an enterprise can widely absorb social capital, rapidly expand the scale of the enterprise, enhance the visibility of the enterprise, and strengthen the competitiveness of the enterprise. World-renowned large enterprises, almost all through the listing of financing, capital operation, to realize the scale of the fission, and quickly cross into the ranks of large enterprises. Product operation is only the primary stage of the original accumulation of capital. With the development and growth of enterprises, the realization of listing has become the dream of many entrepreneurs. Successful listing highlights the achievements of entrepreneurs, so that enterprises hope to get a jump in development. 95% of the top 500 enterprises in the United States are listed companies. With the listing of the enterprise, the enterprise becomes a public listed company which is concerned by the society, so that the enterprise has a better opportunity to develop, and can get more development opportunities, and due to accept the strict supervision of the regulatory authority, the company is more standardized in terms of governance.
Enterprise listing enables enterprises to obtain direct financing channels, enterprises can obtain more low-cost funds through the capital market, which can promote the faster development of enterprises.
The benefits of enterprise listing financing. Many people mistakenly believe that only companies in need of money to go public, and there is no need for companies not in need of money to go public. In fact, it is not, the enterprise listing will bring great benefits to the enterprise. The company's shares have a circulating market, shareholders are free to buy and sell shares, to recover the venture capital and returns, for dissatisfied shareholders or shareholders in urgent need of funds, the listing for the company's shareholders to cash provides an excellent opportunity, but also for the exit of venture capital to establish a smooth channel. Thus, it is easier to attract venture capitalists to enter. Creating wealth for the company and shareholders: The value of the company is determined through the market. After going public, the investing public usually values a company at 5-30 times its profits. Private companies are usually valued by the tax authorities or investors at 1-2 times profits. The value of the company will be greatly increased after the listing. Employees are more motivated to work when their shares have value: the right to subscribe or distribute shares in a listed company is extremely attractive to employees. It can absorb and retain excellent talents, and can stimulate employees' work enthusiasm. Increase the trust of financial institutions in the company and reduce the cost of financing: a listed company has a higher creditworthiness, which makes it easy to obtain credit and reduces the cost of financing. Listing raises more capital: listed companies can get allotment of new shares for financing more easily and raise more development capital. Enhancement of company's popularity: listing can make the company's image greatly improved, popularity greatly enhanced, credibility and competitiveness enhanced, expanding the company's influence, and easy to gain the trust of the society to the enterprise. Acquisition of other companies with shares: It is beneficial for the company to carry out acquisitions and mergers with shares rather than cash, which increases the company's chances of cooperation with the market and gives it a favorable tool for capital operation. Listing reduces the proportion of controlling interest, and the reduction of controlling shareholders' holdings can enable the original shareholders to transfer business risks to other investors. The cost of listing a company is due to the fact that it becomes a public company and is accountable to the shareholders after listing. Shareholders have certain requirements for profits and growth rates, bringing short-term performance pressure on management. Increase the possibility of being acquired. The need to comply with laws and regulations relating to listing and to be subject to regulation. Statutory disclosure makes it necessary for the company to publicize relevant information, increasing corporate transparency and increasing costs such as public relations and legal fees. Disclosure of connected transactions, which will be scrutinized by the public and the media. Managers may incur criminal or civil liability for mismanagement. The transfer of the majority shareholder's equity attracts the attention of society and investors.