Back Door Listing

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DEFINITION of 'Back Door Listing'

A strategy of going public used by a company that fails to meet the criteria for listing on a stock exchange. To get onto the exchange, the company desiring to go public acquires an already listed company.

INVESTOPEDIA EXPLAINS 'Back Door Listing'

Believe it or not, purchasing a public company can be a cost-effective way for some firms to go public.

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