Primary Listing

AAA

DEFINITION of 'Primary Listing'

The main stock exchange where a publicly traded company's stock is bought and sold. Having a prestigious primary listing, such as the New York Stock Exchange, lends a company credibility and makes investors more likely to purchase its shares. In addition to its primary listing, a stock may also trade on other exchanges. A company might want to do this to increase its liquidity and ability to raise capital.

INVESTOPEDIA EXPLAINS 'Primary Listing'

In order to be listed on more than one exchange, a practice called "dual listing" or "cross listing," the company must meet the requirements to be listed on the other exchange(s), such as company size and share liquidity. Cross listing would, for example, allow a multinational corporation to trade not just on the New York Stock Exchange (NYSE), but also on the London Stock Exchange (LSE). If the company does not continually meet an exchange's listing requirements, it will be delisted from that exchange.

RELATED TERMS
  1. Primary Exchange

    The most important stock exchange in a given country. Common ...
  2. Relisted

    The return to listed status for a stock after having been delisted ...
  3. Cross-Listing

    The listing of a company's common shares on a different exchange ...
  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. Dual Listing

    When a company's securities are listed on more than one exchange ...
Related Articles
  1. Investing Basics

    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. Options & Futures

    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!
  3. Investing Basics

    Digging For Profitable Delistings

    Deregistration can provide opportunities for savvy investors. We'll show you how to cash in.
  4. Retirement

    If a stock is delisted, do shareholders still own the stock?

    If a company has been delisted, it is no longer trading on a major exchange, but the owners of the company shares are not stripped of their status as owners. However, delisting often results ...
  5. Investing

    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, the Nasdaq won't allow just any company to be traded on its exchange. ...
  6. Investing

    Why are big foreign companies considering delisting their American depositary receipts?

    American depositary receipts (ADRs) were developed to give investors an easier way to invest in foreign companies. An ADR is a financial product issued by U.S. depositary banks and traded on ...
  7. Investing

    Can stocks be traded on more than one exchange, such as, for example, on both the Nasdaq and the NYSE?

    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 and pay for any associated fees. If it chooses to do so, a company ...
  8. Economics

    What is a roll-up merger and why does it occur?

    Find out what a roll-up merger is and how it is executed. See why roll-ups might bring added efficiency and competition into a fragmented market.
  9. Trading Strategies

    What are the main differences between a Symmetrical Triangle pattern and a pennant?

    Understand the key differences between the symmetrical triangle and pennant patterns, including how they differ in formation, duration and breakout timing.
  10. Fundamental Analysis

    Why are OTC (over-the-counter) transactions controversial?

    Learn more about over-the-counter transactions, and why OTC traders are considered riskier than traders working with larger market exchanges.

You May Also Like

Hot Definitions
  1. Multiplier Effect

    The expansion of a country's money supply that results from banks being able to lend. The size of the multiplier effect depends ...
  2. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  3. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  4. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  5. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  6. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
Trading Center