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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Listing requirements and incentives must exist in a way as to ensure a deep and liquid market.
The study empirically tests whether these regulated industries provided more frequent income statements and greater amounts of income statement disclosures, looking at rate regulation and stock market listing requirements as separate types of regulation.
Listing requirements have been used before to promote improved corporate governance and responsibility.
exchanges for that matter, has resulted in the development of alternative listing requirements for companies in the development state and has also led to a degree of flexibility on the part of the exchanges in applying the minimum listing requirements.
Strata Skin Sciences received written notification from Nasdaq on August 16, 2019, that, because the company has not yet filed either of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 and June 30, 2019 or its Annual Report on Form 10-K for the year ended December 31, 2018 with the SEC, the company does not comply with the continued listing requirements under Nasdaq Listing Rule 5250(c)(1).
A10 Networks (NYSE: ATEN), a Reliable Security Always company, announced on Friday the receipt of an expected notice from the New York Stock Exchange (NYSE) indicating that the company is not in compliance with the NYSE's continued listing requirements under the timely filing criteria established in Section 802.01E of the NYSE Listed Company Manual.
On April 17, 2013, the company received a letter from NASDAQ Stock Market LLC (NASDAQ) indicating that the company was not in compliance with the continued listing requirements under NASDAQ Listing Rule 5250(c) (1).
Reuters said that the China Securities Regulatory Commission (CSRC) has issued a consultation paper on listing requirements for rural commercial banks.
KARACHI, April 16, 2011 (Balochistan Times): The Karachi Stock Exchange (KSE) has extended the suspension period of 13 companies for another 60 days upon failing to comply with KSEs listing requirements, effective April 19, 2011.
19 May 2010 - US bank holding company Cowlitz Bancorporation (NASDAQ:CWLZ) said on Tuesday it has received a warning from NASDAQ about its failure to meet listing requirements.