Listed Security

AAA

DEFINITION of 'Listed Security'

A financial instrument that is traded through an exchange, such as the NYSE or Nasdaq. When a private company decides to go public and issue shares, it will need to choose an exchange on which to be listed. To do so, it must be able meet that exchange's listing requirements and pay both the exchange's entry and yearly listing fees. Listing requirements vary by exchange and include minimum stockholder's equity, a minimum share price and a minimum number of shareholders. Exchanges have listing requirements to ensure that only high quality securities are traded on them and to uphold the exchange's reputation among investors.

INVESTOPEDIA EXPLAINS 'Listed Security'

Listing on the Nasdaq is considerably less expensive than listing on the NYSE, so newer companies often opt for the Nasdaq if they meet its requirements. The exchange a company chooses to be listed on can affect how investors perceive the stock. Some companies choose to cross-list their securities on more than one exchange.


If a stock fails to comply with the exchange's listing requirements, it will be delisted. Delisted securities that can no longer be traded on an exchange will sometimes be traded over the counter. The over-the-counter market does not have listing requirements.

RELATED TERMS
  1. Nasdaq

    A global electronic marketplace for buying and selling securities, ...
  2. SEC Form 20-F

    A form issued by the Securities and Exchange Commission (SEC) ...
  3. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  4. Upstairs Trade

    A buy or sell transaction for an exchange-listed stock that is ...
  5. New York Stock Exchange - NYSE

    A stock exchange based in New York City, which is considered ...
  6. Delisting

    The removal of a listed security from the exchange on which it ...
Related Articles
  1. Stock Basics Tutorial
    Investing Basics

    Stock Basics Tutorial

  2. The Dirt On Delisted Stocks
    Investing Basics

    The Dirt On Delisted Stocks

  3. EDGAR: Investors' One-Stop-Shop For ...
    Fundamental Analysis

    EDGAR: Investors' One-Stop-Shop For ...

  4. Getting To Know The Stock Exchanges
    Options & Futures

    Getting To Know The Stock Exchanges

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center