Listing (finance)

In corporate finance, a listing refers to the company's shares being on the list (or board) of stock that are officially traded on a stock exchange. 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 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 critical levels may be delisted by the exchange. Delisting often arises from a merger or takeover, or the company going private. 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. 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 a million shares of stock worth $100 million and must have earned more than$10 million over the last three years. 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. London Stock Exchange: the main market of the London Stock Exchange requires a minimum market capitalization (£700,000), three years of audited financial statements, minimum public float (25%) and sufficient working capital for at least 12 months from the date of listing. Bombay Stock Exchange: Bombay Stock Exchange (BSE) requires a minimum market capitalization of and minimum public float equivalent to .