Listing (finance)

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In corporate finance, a list refers to a company's stock listed (or board) of stocks that are officially traded on the stock exchange. Some stock exchanges allow the shares of foreign companies to be listed and allow double listing, depending on the terms.

Usually the issuing company is one that applies to the list but in some countries the exchange can list companies, for example because its shares are already traded through informal channels.

Shares whose market value and/or turnover falls below the critical level may be removed by the exchange. Delisting often comes from a merger or takeover, or a company becomes private.

Video Listing (finance)

Persyaratan listing

Each stock exchange has a list or own requirement. Initial listing requirements typically include providing a history of several years of financial statements (not required for "alternative" markets targeting young companies); sufficient size of the amount placed among the general public (free float), both in absolute terms and as a percentage of total shares outstanding; approved prospectus, usually including opinions from independent appraisers, and so on.

Sample list requirements

The listing requirements imposed by several stock exchanges include: The New York Stock Exchange requires the company to issue at least one million shares worth $ 100 million and must earn more than $ 10 million over the past three years..

The NASDAQ Stock Exchange: The NASDAQ requires the company to issue at least 1.25 million shares worth at least $ 70 million and should earn more than $ 11 million over the past three years.

London Stock Exchange: London Stock Exchange's main markets require a minimum market capitalization (Ã, Â £ 700,000), three years of audited financial statements, minimum public buoys (25%) and enough capital work at least 12 months from the date of recording.

Bombay Stock Exchange: Bombay Stock Exchange (BSE) requires a minimum market capitalization of INR 250 million (US $ 3.7 million) and a minimum public buoy equivalent to INR 100 million (US $ 1.5 million).

Maps Listing (finance)

Delisting

Delisting refers to the practice of removing company stock from the stock market so that investors can no longer trade shares from the exchange on the exchange. This usually happens when a company goes out of business, declares bankruptcy, no longer meets stock listing rules, or has become a private company after mergers or acquisitions, or wishes to reduce the complexity and overhead of regulatory reporting, or if the stock volume in the stock to be removed is not significant. Delisting does not necessarily mean a change in the company's core strategy.

In the United States, securities that have been removed from a primary exchange for reasons other than a private company or liquidation may be traded on a free market such as the OTC Bulletin Board or Pink Sheets.

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References

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External links

• Nasdaq lists standards and charges

Source of the article : Wikipedia