What are the benefits for Oracle Inc to transfer its listing to New York Stock Exchange?
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samf (
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June 21st, 2013
What are the benefits for a company to transfer its listing to a different stock stock exchange?
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The most obvious answer is expectation that it will be included in an index. The NYSE has a smaller company base, it is like moving to a smaller pond when a big fish. You will by consensus get into the indices eventually, because it seems weird you are not already in the indices. Then fund companies will buy your stock because they invest in index funds (companies that make up the index). So, minor artificial share value bump. However, if you hold a million shares, very significant to you.
Oracle (ticker:ORCL) has been a big fish in the lower quality pond for a long time. Listing on NYSE grants confidence to investors, and also gives them a more visible platform.
@Imadethisupwithnoforethought ORCL has been in major indices for a long time, including the NASDAQ 100. Moving to NYSE will not affect that, NYSE’s proprietary indices are not widely followed, and the NASDAQ Index is much more visible.
NYSE provides a lot of services to the Investor Relations unit at a listed company, and NYSE helps branding.
(Full disclosure – I work for a stock exchange).
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