Listing (finance)
In
Normally the issuing company is the one that applies for a listing but in some countries[
Stocks whose market value and/or turnover fall below critical levels may be delisted by the exchange. Delisting often arises from a
Requirements
Each stock exchange has its own listing requirements or rules. Initial listing requirements usually include supplying a history of a few years of financial statements (not required for "alternative" markets targeting young firms); a sufficient size of the amount being placed among the general public (the free float), both in absolute terms and as a percentage of the total outstanding stock; an approved prospectus, usually including opinions from independent assessors, and so on.
Examples
The listing requirements imposed by some stock exchanges include:
- New York Stock Exchange: the New York Stock Exchange (NYSE) requires a company to have issued at least a million shares of stock worth $100 million and must have earned more than $10 million over the last three years.[1]
- NASDAQ Stock Exchange: NASDAQ requires a company to have issued at least 1.25 million shares of stock worth at least $70 million and must have earned more than $11 million over the last three years.[2]
- London Stock Exchange: the main market of the London Stock Exchange requires a minimum market capitalization (£700,000), three years of audited financial statements, minimum public float (25%) and sufficient working capital for at least 12 months from the date of listing.
- Bombay Stock Exchange: Bombay Stock Exchange (BSE) requires a minimum market capitalization of ₹250 million (US$3.1 million) and minimum public float equivalent to ₹100 million (US$1.3 million).[3]
Delisting
Delisting refers to the practice of removing the
In the United States, securities which have been delisted from a major exchange for reasons other than going private or liquidating may be traded on
References
- ^ "Archived copy". Archived from the original on 2013-08-21. Retrieved 2020-03-16.
{{cite web}}
: CS1 maint: archived copy as title (link) - ^ "Applications, Notifications & Guides - Nasdaq Listing Center". nasdaq.com.
- ^ "BSE Ltd. (Bombay Stock Exchange) - Live Stock Market Updates for S& BSE SENSEX, Stock Quotes & Corporate Information". bseindia.com.
- ^ "CORRECTED - UPDATE 1-Allianz to delist from NYSE and European exhanges". Reuters. 22 September 2009. Archived from the original on 2023-05-26.
External links