| Enhancement of the company image: Quoted companies are commonly believed to be more financially stable.
Listing may improve the image of the company with its customers and suppliers, allowing it to gain additional business
and to improve its buying power.
Facilitation of growth by acquisition: A listed company is in a better position to make a paper offer for a target
company than an unlisted one.
If a company qualifies to list its stock on the stock exchange, it is generally felt that listing is beneficial both to the
company and to the shareholders. Listed companies receive advertising and this probably has a beneficial effect on the
sales of the product of the firm. A quoted company is one which has satisfied the stock exchange’s requirements with
regard to its financial information. Companies may seek to have their securities listed on the stock exchange since
listing has an element of prestige; it indicates that the company has grown above local importance and attained a
significant level in terms of size and profitability. Listing may also facilitate future security issues especially when
investors are more willing to purchase the securities of companies whose securities are publicly traded on an exchange.
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