Which statement about listing on the London Stock Exchange is true?

Which statement about listing on the London Stock Exchange is true?

• A. The company must be a private company
• B. The company must be a public company
• C. The company must have a market cap of at least £100 million
• D. The company must be incorporated outside the UK

Answer: (B)

Listing on the London Stock Exchange is open to issuers that can offer their shares to the general public, which means the company must be a public company. Public companies have shares that can be bought and sold by a broad group of investors and are subject to the exchange’s disclosure and governance requirements. Private companies, by contrast, have restrictions on share transfer and cannot publicly offer shares, so they aren’t eligible to list. There isn’t a fixed £100 million market cap threshold that applies universally to all listings, and the country of incorporation isn’t the decisive factor—foreign-incorporated firms can list as well as UK-incorporated ones, provided they meet the exchange’s rules.

Listing on the London Stock Exchange is open to issuers that can offer their shares to the general public, which means the company must be a public company. Public companies have shares that can be bought and sold by a broad group of investors and are subject to the exchange’s disclosure and governance requirements. Private companies, by contrast, have restrictions on share transfer and cannot publicly offer shares, so they aren’t eligible to list. There isn’t a fixed £100 million market cap threshold that applies universally to all listings, and the country of incorporation isn’t the decisive factor—foreign-incorporated firms can list as well as UK-incorporated ones, provided they meet the exchange’s rules.