{{Short description|Allowing trading of a company's shares}} thumb In corporate finance, a '''listing''' refers to the company's shares being on the list (or board) of stock that are publicly listed. Some stock exchanges allow shares of a foreign company to be listed and may allow dual listing, subject to conditions.
Normally the issuing company is the one that applies for a listing but in some countries{{which?|date=March 2018}} an exchange can list a company, for instance because its stock is already being traded via informal channels.
Stocks whose market value and/or turnover fall below certain levels may be delisted by the exchange. Delisting often arises from a merger or takeover, or the company going private.
==Requirements== Each stock exchange has its own '''listing requirements''' or '''rules'''. Initial listing requirements usually include supplying a history of a few years of financial statements (not required for "alternative" markets targeting young firms); a sufficient size of the amount being placed among the general public (the free float), both in absolute terms and as a percentage of the total outstanding stock; an approved prospectus, usually including opinions from independent assessors, and so on.
===Examples=== The listing requirements imposed by some stock exchanges include: * '''New York Stock Exchange:''' the New York Stock Exchange (NYSE) requires a company to have issued at least one million shares of stock worth $100 million and must have earned more than $10 million over the last three years.<ref>{{Cite web |url=https://www.nyse.com/Frameset.html?displayPage=%2Flisted%2F1022540125610.html |title=Archived copy |access-date=2020-03-16 |archive-url=https://web.archive.org/web/20130821002935/http://www.nyse.com/Frameset.html?displayPage=%2Flisted%2F1022540125610.html |archive-date=2013-08-21 |url-status=dead }}</ref> * '''NASDAQ Stock Exchange:''' NASDAQ requires a company to have issued at least 1.25 million shares of stock worth at least $70 million and must have earned more than $11 million over the last three years.<ref>{{cite web|url=http://www.nasdaq.com/about/listing_information.stm|title=Applications, Notifications & Guides - Nasdaq Listing Center|work=nasdaq.com}}</ref> * '''London Stock Exchange:''' the main market of the London Stock Exchange requires a minimum market capitalization of £700,000, three years of audited financial statements, a minimum public float of 25% and sufficient working capital for at least 12 months from the date of listing. * '''Bombay Stock Exchange:''' the Bombay Stock Exchange (BSE) requires a minimum market capitalization of {{INRConvert|250|m}} and minimum public float equivalent to {{INRConvert|100|m}}.<ref>{{cite web|url=http://www.bseindia.com/about/abintrobse/listsec.asp|title=BSE Ltd. (Bombay Stock Exchange) - Live Stock Market Updates for S& BSE SENSEX, Stock Quotes & Corporate Information|work=bseindia.com}}</ref>
==Delisting== '''Delisting''' refers to the practice of removing the capital stock of a company from a stock exchange so that investors can no longer trade shares of the stock on that exchange. This typically occurs when a company goes out of business, declares bankruptcy, no longer satisfies the listing rules of the stock exchange, has become a private company, has become a subsidiary after a merger or acquisition, or wants to reduce regulatory reporting complexities and overhead, or if the trading volumes on the exchange from which it wishes to delist are below minimum thresholds.<ref>{{cite news |title=CORRECTED - UPDATE 1-Allianz to delist from NYSE and European exhanges |website=Reuters |date=22 September 2009 |archive-url=https://web.archive.org/web/20230526091422/https://www.reuters.com/article/marketsNews/idUSLM17319920090922 |archive-date=2023-05-26 |url-status=live |url=https://www.reuters.com/article/marketsNews/idUSLM17319920090922}}</ref>
In the United States, securities which have been delisted from a major exchange for reasons other than going private or liquidating may be traded on over-the-counter markets like the OTC Bulletin Board or the Pink Sheets.
==References== {{Reflist}}
==External links== * [https://listingcenter.nasdaq.com/rulebook/nasdaq/rules/nasdaq-5900-series Nasdaq listing standards and fees]
{{stock market}} Category:Securities (finance) Category:Stock market