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 ?
Proposal for decision at the extraordinary general meeting The board proposes, as a consequence of that the listing requirements are not complied with by Medicover, that the extraordinary general meeting decides on a resolution to de-list the Swedish Depository Receipts of Medicover listed at the Stockholm Stock Exchange (former O-list).
The listing requirements have been developed according to best practice and are in line with existing and coming EU directives.
Statements in this news release about IsoRay's future expectations, including: IsoRay's ability in the future to meet NASDAQ listing requirements, and all other statements in this release, other than historical facts, are forward-looking statements.
As part of its appeal to a Nasdaq Listings Qualifications Panel to remain listed on the Nasdaq National Market, Wave has submitted a plan to implement this reverse stock split for purposes of regaining compliance with that market's $1 minimum closing bid price continued listing requirement.
AMEX:TAG), owner of Talon(TM) zippers and a full service trim management supplier for manufacturers of fashion apparel, today announced that the Company received a letter from The American Stock Exchange LLC (or AMEX) informing the Company that it was in noncompliance with certain AMEX continued listing requirements.
The Company could apply for listing of its common stock on the Nasdaq National Market as soon as 90 days after its stock begins trading on the Nasdaq Capital Market, provided that it continues to meet all listing requirements.
However, in the event the Company does not remedy the bid price deficiency by May 30, 2006 but evidences compliance with all other initial listing requirements for the Nasdaq Capital Market upon the expiration of the initial 180 day period, the Company will be eligible for an additional 180 day period, through November 27, 2006, to achieve compliance with the minimum bid price requirement.