What does a company agree upon when signing a listing agreement?

What does a company agree upon when signing a listing agreement?

• A. They must submit annual and interim financial reports.
• B. They cannot undertake any mergers or acquisitions without approval.
• C. They are exempt from disclosing any major changes within the company.
• D. They have no obligations once listed on the exchange.

Answer: (A)

When a company signs a listing agreement, they agree to submit annual and interim financial reports. This is a standard practice required by stock exchanges to ensure transparency and provide investors with relevant information to make informed decisions. By submitting these reports, the company discloses important financial data and performance metrics, fostering credibility and trust among investors and the public. This commitment is crucial for maintaining the integrity of the capital markets and complying with regulatory standards.

When a company signs a listing agreement, they agree to submit annual and interim financial reports. This is a standard practice required by stock exchanges to ensure transparency and provide investors with relevant information to make informed decisions. By submitting these reports, the company discloses important financial data and performance metrics, fostering credibility and trust among investors and the public. This commitment is crucial for maintaining the integrity of the capital markets and complying with regulatory standards.