Certified Management Accountant Practice Exam 2025 - Free CMA Practice Questions and Study Guide

Listing on a stock exchange significantly increases public scrutiny for a company. When a firm becomes publicly traded, it is subject to stringent reporting and regulatory requirements. This includes regular financial disclosures, adherence to corporate governance standards, and compliance with securities regulations.

As a result, the actions and performance of the company are more closely monitored by investors, analysts, and the media. The heightened transparency demands that the company operates with greater accountability, thereby influencing its business decisions and strategic direction. This increased scrutiny can foster investor confidence and potentially lead to a stable investor base, which is advantageous for long-term growth.

Other options do not accurately reflect the outcomes of being listed on an exchange. For example, public accountability actually increases, access to capital is typically enhanced, and visibility in the market tends to grow as a result of being listed.