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I need some assistance with these assignment. the original function of a stock exchange Thank you in advance for the help!
I need some assistance with these assignment. the original function of a stock exchange Thank you in advance for the help! There are relatively stringent requirements to become listed on the stock exchange. In addition to fulfilling the UKLA requirements, the company would need to provide prospective investors as well as the UKLA with a prospectus. A prospectus is a document that introduces the company. This document “describes and discusses the company’s business and operations. It provides details on the strengths and strategies of the company, its principal products and services, and its employees. It also gives an overview of the industry in which the company operates, so that prospective investors can understand more of what they may be getting into if they decide to invest
Additional information in the prospectus is three years of audited financial statements to help prospective investors assess the current financial performance and financial position of the business, and an operational and financial review which gives information on the key drivers of the business. The directors would also need to provide a statement that there were no significant changes in the operations of the business since the last financial year. Financial resources are also required to get the prospectus done and if the company does not have its financial accounts up to date, a firm would have to be contracted to get it done. Investors will have to be convinced that investing in the company is a worthwhile venture. These financial statements would be subject to scrutiny. In addition to the increased scrutiny and the relatively high cost of listing on the main market, the process can be very time consuming and daunting.
The second factor is the ongoing requirements for disclosures which are very costly and time-consuming. To remain listed on the main market of the London stock exchange, a company is required to publish financial statements on a quarterly .basis. These financial statements have to be available within a specified timeframe after the quarter has ended.