Listed Security

What is a 'Listed Security'

A listed security is 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.

BREAKING DOWN '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. Listed

    Being included and traded on a given exchange. Most exchanges ...
  2. Primary Listing

    The main stock exchange where a publicly traded company's stock ...
  3. Delisting

    The removal of a listed security from the exchange on which it ...
  4. Listing Requirements

    Various standards that are established by stock exchanges (such ...
  5. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  6. Admission Board

    The representatives of a particular stock exchange who determine ...
Related Articles
  1. Investing

    The Dirt On Delisted Stocks

    Listed securities are "the cream of the crop". Find out how a firm can lose that status and why you should be wary.
  2. Investing

    The NYSE And Nasdaq: How They Work

    Learn some of the important differences in the way these exchanges operate and the securities that trade on them.
  3. Investing

    What's an Exchange?

    An exchange is an organized marketplace where securities and other financial instruments are traded.
  4. Markets

    Getting To Know The Stock Exchanges

    Here are the answers to all the questions you have about stock exchanges but are too afraid to ask!
  5. Markets

    Why Do Companies Choose NASDAQ for Their IPO?

    The NYSE is known for its prestige so why do some companies opt to list on the NASDAQ instead?
  6. Markets

    Trading Over the Counter

    OTC trades tend to be for smaller company stocks and debt securities. Debt securities such as bonds are generally traded by investment banks making markets for specific issues.
  7. Investing

    Why You Should Understand The Stock Market

    Even if you don't invest a cent in stocks, you should still understand how the stock market works. Find out why.
  8. Markets

    Series 24 Exam Prep: Stock Exchanges

    Before you take the series 24, you need to understand exchanges, listing requirements and much more.
  9. Markets

    Stock Exchanges: A Global Tour

    Check out the history and inner workings of the world's six most well-known stock exchanges.
  10. Markets

    The Birth Of Stock Exchanges

    Learn how British coffeehouses helped give rise to the juggernaut that is the NYSE.
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. What are the advantages and disadvantages of listing on the Nasdaq versus other stock ...

    Discover some of the primary advantages and disadvantages that exist for companies listed on the Nasdaq exchange rather than ... Read Answer >>
  3. 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 >>
  4. What are the listing requirements for the Nasdaq?

    Major stock exchanges, like the Nasdaq, are exclusive clubs - their reputations rest on the companies they trade. As such, ... Read Answer >>
  5. What are the rules behind the delisting of a stock?

    The criteria to remain listed on an exchange differs from one exchange to another. On the New York Stock Exchange (NYSE), ... Read Answer >>
  6. I own shares of a company that just received a delisting notice from Nasdaq. Does ...

    Let's start by walking through the reasons for listing requirements and what happens when a company's stock is delisted from ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center