Listing Requirement

Listing Requirement

Rules to which a publicly-traded company must adhere in order to qualify for trading on a stock exchange. Each exchange has its own rules, but they usually pertain to having a certain market capitalization, number of shareholders, and/or revenue. Listing requirements exist to enforce as much stability on an exchange as possible. A previously listed company may be delisted if it falls below the listing requirements for too long, especially if it shows no sign of recovery.

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Listing requirement. Listing requirements are the standards a corporation must meet to have its stock or bonds traded on a particular exchange.

Exchanges set their own initial and continuing listing requirements. Among the listing criteria are a corporation's pretax earnings, a minimum market value, and a minimum number of existing shares.