Question

What benefits does a company stand to gain for listing on the Ghana Stock Exchange? Explain why many companies are not listed in spite of the potential benefits stated above.

Answer 1

Answer)

The first and foremost advantage of listing in Ghana stock exchange is that company can raise funds more transparently from the public. This will give company a source of funding.

Secondly, the company shares will be traded on stock market while will help in finding the correct value of company.

Further, stock market is regulated so the investor don't have to worry about their investment.

Inspite of this many companies still are not listed in the stock exchange due ro the reason that there is some guidelines that company needs to follow in order to get listed. So many companies are not able to meet the requirements to be listed.

Once after getting listed they have to follow many rules and regulations.

So management of the company thinks they won't be able to function more free that why they choose not to get listed.