Listing Requirements

What are 'Listing Requirements'

Various standards that are established by stock exchanges (such as the NYSE) to control membership in the exchange. Companies wishing to issue their stock on a given exchange must meet its listing requirements and continue to do so for as long as they are on the exchange.

BREAKING DOWN 'Listing Requirements'

While the particulars vary by exchange, the two most important categories of requirements deal with the size of the company (as defined by annual income or market capitalization) and the liquidity of the shares (a certain number of shares must already have been issued).

For example, one of the listing requirements in the NYSE for public companies is that the company must have at least 1.1 million publicly-traded shares outstanding that are worth at least $100 million.

RELATED TERMS
  1. Listed Security

    A financial instrument that is traded through an exchange, such ...
  2. Listed

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

    The main stock exchange where a publicly traded company's stock ...
  4. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  5. Delisting

    The removal of a listed security from the exchange on which it ...
  6. Regional Stock Exchange

    A place outside of a country's primary financial center where ...
Related Articles
  1. Professionals

    Exchange Markets

    Worldwide, there are over 100 securities exchanges where buyers and sellers meet to exchange goods and services in an organized, orderly fashion. Before we proceed, beginners should refer ...
  2. Professionals

    Exchange Market Structure

    CFA Level 1 - Exchange Market Structure. Contrasts the call and continuous market structures. Showcases the structural differences between regional, national and OTC markets.
  3. Investing Basics

    What's an Exchange?

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

    The Birth Of Stock Exchanges

    Learn how British coffeehouses helped give rise to the juggernaut that is the NYSE.
  5. Investing Basics

    Learn About the New York Stock Exchange

    The New York Stock Exchange (NYSE) is nicknamed the “Big Board,” and for good reason. It’s the largest, oldest and best-known stock exchange in the world.
  6. Investing

    How The NYSE Makes Money

    We examine how the New York Stock Exchange, the leading US stock exchange, makes money.
  7. Investing

    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.
  8. Investing Basics

    Stocks Basics: How Stocks Trade

    Most stocks are traded on exchanges, which are places where buyers and sellers meet and decide on a price. Some exchanges are physical locations where transactions are carried out on a trading ...
  9. Professionals

    THE EXCHANGES

    The Exchanges The most recognized stock exchange in the world is the New York Stock Exchange or the NYSE. There are, however, many exchanges throughout the United States that all operate in a ...
  10. Professionals

    Series 24 Exam Prep: Stock Exchanges

    Before you take the series 24, you need to understand exchanges, listing requirements and much more.
RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
  5. What are all of the securities markets in the U.S.A?

    There are three major U.S. financial securities markets which are: New York Stock Exchange (NYSE): NYSE is a stock exchange ... Read Answer >>
  6. 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 >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center