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JAMB Commerce 2006 Question 16

Question 16

Stock Exchange

The main requirement for admission to the second-tier securities market is the

  1. A.provision of a three-year trading record
  2. B.disclosure of all trading activities
  3. C.creation of a good atmosphere for growth and development
  4. D.guaranteeing of dividends to shareholders.
Show the answer and explanation

Answer: A (provision of a three-year trading record)

Explanation

The second-tier market lets smaller firms raise capital with easier rules; the main condition is a three-year trading record instead of the five years needed for the main market.