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.

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.