listing requirements

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Listing requirements

Requirements, including minimum shares outstanding, market value, and income, that are laid down by an exchange for any stock to be listed for trading.

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.

listing requirements

Requirements that are made of a firm and the firm's security before the security can be listed for trading on an exchange. Each exchange has its own listing requirements, covering things such as the minimum shares outstanding, the number of shareholders, and the earnings history.
Case Study The New York Stock Exchange imposes distribution and quantitative criteria that companies must meet in order to list stocks on the Big Board. The exchange also states that it maintains broad discretion regarding a firm's listing and may deny listings or apply additional or more stringent criteria as circumstances warrant. Below are domestic standards for listing securities on the New York Stock Exchange (separate standards apply to affiliated companies and non-U.S. companies).
    Minimum Distribution Criteria
    1. 2,000 round-lot (generally, 100 shares) shareholders, or
    2. 2,200 total shareholders together with 100,000-share average monthly trading volume during the most recent 6 months, or
    3. 500 total shareholders together with one-million-share average monthly trading volume during the most recent 12 months.
  1. One million public shares.
    1. $100 million market value of public shares for a public company, or
    2. $60 million market value for a spinoff, carve-out, or IPO.
    Minimum Quantitative Standards
  1. Aggregate pretax earnings the last three years of $6.5 million achieved as $2.5 million in the most recent year and $2 million in each of the two preceding years, or
  2. Pretax earnings of $4.5 million in the most recent year, although each of the last three years must be profitable, or
  3. $25 million of aggregate operating cash flow for the last three years (each year must report a positive amount) for companies with over $500 million in global market capitalization and over $100 million in revenues of the last 12 months, or
  4. $100 million in revenues during the last fiscal year and average global market capitalization of $1 million.
References in periodicals archive ?
Reflecting a widely held opinion among local bulletin board companies, Robertson said the tighter listing requirements only help legitimate companies gain investor respect.
The company is committed to resolving the issues raised in connection with the investigations, and regaining compliance with all SEC filing requirements (including the filing of its Forms 10-Q for the fiscal second and third quarters of 2007) and all NASDAQ listing requirements, as soon as possible.
According to the listing requirements of the Stockholm Stock Exchange as of 1 January 2006, a company listed on the O-list shall have at least 500 shareholders who own shares valued at least to SEK 10,000 per shareholding.
We are also introducing harmonized Nordic listing requirements to improve market transparency," said Jukka Ruuska, President business area Nordic Marketplace at OMX.
Pursuant to NYSE's notice, to maintain its listing, ZAP must submit a plan outlining the steps the Company proposes to take to regain compliance with the NYSE Arca continued listing requirements no later than 18 months from the date of the original notice, August 23, 2006.
AMEX:GTE) today announced that the American Stock Exchange (Amex) provided the Company with a letter dated August 17, 2006 that supplements and updates the Exchange's original July 18, 2006 notice of its intention to de-list the Company and notifies the Company of the Staff's determination that the Company is noncompliant with a number of additional continued listing requirements.
The application was withdrawn because IsoRay's stock did not meet the minimum bid requirement of $4 for more than ten trading days, and thus did not meet the listing requirements for the NASDAQ Capital Market.
If the company is not in compliance with the Rule by December 26, 2006, NASDAQ will determine if the company is in compliance with all the other NASDAQ listing requirements.
Should Nasdaq decline to accept Wave's plan to preserve its Nasdaq National Market listing status, Wave would apply to have its common stock transferred to The Nasdaq Capital Market, as long as it continues to satisfy the applicable initial listing requirements for such market other than the minimum bid requirement.