Back Door Listing


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.

BREAKING DOWN 'Back Door Listing'

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

  1. Going Public

    The process of selling shares that were formerly privately held ...
  2. Public Company

    A company that has issued securities through an initial public ...
  3. Initial Public Offering - IPO

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  4. Reverse Takeover - RTO

    A type of merger used by private companies to become publicly ...
  5. Market

    A medium allowing buyers and sellers of a specific good or service ...
  6. Equity Market

    The market in which shares are issued and traded, either through ...
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  1. What is a back door listing?

    A back door listing, sometimes referred to as a reverse takeover, reverse merger, or reverse IPO, occurs when a privately-held ... Read Full Answer >>
  2. Can mutual funds invest in IPOs?

    Mutual funds can invest in initial public offerings (IPOS). However, most mutual funds have bylaws that prevent them from ... Read Full Answer >>
  3. Where do penny stocks trade?

    Generally, penny stocks are traded through the use of the Over the Counter Bulletin Board (OTCBB) and through pink sheets. ... Read Full Answer >>
  4. Where can I buy penny stocks?

    Some penny stocks, those using the definition of trading for less than $5 per share, are traded on regular exchanges such ... Read Full Answer >>
  5. How does the stock market react to changes in the Federal Funds Rate?

    The stock market reacts to changes in the federal funds rate in various ways depending on where it is in the business cycle. ... Read Full Answer >>
  6. How do I place an order to buy or sell shares?

    It is easy to get started buying and selling stocks, especially with the advancements in online trading since the turn of ... Read Full Answer >>

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