Why Is A Corporation?

1106 WordsJul 3, 20165 Pages
One of the reasons why a corporation may prefer NTSE as opposed to NASDAQ is because when listed on a regional exchange, NASDAQ limits the amount of capital that the corporation may access in case it needs one. Additionally, when a corporationis listed on a national exchange, it enjoys that prestige factor. NYSE is mostly an auction market that uses floor traders in most of its operations with specialists who facilitate and oversees all trades for a certain stock. On the other hand, NASADAQ is not a physical entity but an over the counter market (OTCM) that mostly relies on market makers to facilitate trading. Thus, the former employs marketing specialists whereas the later does not. Further, there is a sort of perceived prestige factor when a corporation moves from NASDAQ to NYSE. It is because NYSE has restrictive requirements for a corporation to qualify to be listedon the exchange. NASDAZ is not an auction market but a communication network that uses computers to distribute information about stocks to buyers and sellers. Thus, many people prefer NYSE over NASDAQ because the former is more informative and easy to use. Personal assistance is also guaranteed when using NYSE. Question Two Operating cash flow results from the firm 's normal business activities. Operating cash flow is calculated the net income against items such as changes to accounts receivable, changes in inventory, and depreciation (Farshadfar & Monem, 2013). It measures whether an organization can
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