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. The Dirt On Delisted Stocks
    Investing Basics

    The Dirt On Delisted Stocks

  2. Getting To Know The Stock Exchanges
    Options & Futures

    Getting To Know The Stock Exchanges

  3. Digging For Profitable Delistings
    Investing Basics

    Digging For Profitable Delistings

  4. What are the listing requirements for ...
    Investing

    What are the listing requirements for ...

Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  3. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  4. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  5. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  6. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
Trading Center