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.

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RELATED FAQS
  1. Can stocks be traded on more than one exchange, such as, for example, on both the ...

    A stock can trade on any exchange on which it is listed. And to be listed it must meet all of the exchange's listing requirements ... Read Answer >>
  2. How does a company switch from one stock exchange to another?

    A publicly traded company can, in fact, switch to a stock exchange that it believes will be favorable to its financing efforts. ... Read Answer >>
  3. What are the advantages and disadvantages for a company going public?

    An initial public offering (IPO) is the first sale of stock by a company. Small companies looking to further the growth of ... Read Answer >>
  4. What does 'going public' mean?

    Going public refers to a private company's initial public offering (IPO), thus becoming a publicly traded and owned entity. ... Read Answer >>
  5. 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 Answer >>
  6. What advantages do corporations have over privately held companies?

    Learn about the chief advantages that publicly traded corporations have over other forms of business organizations, most ... Read Answer >>
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