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listing requirements

Definition

Conditions that a firm issuing a security (such as stock/shares, bonds) must meet before the security is officially listed (quoted) on an organized exchange (such as a stock exchange) for public trading. These conditions state (among other items of information) the issuer's (1) number of years in business, (2) record of earnings, (3) value of total assets, (4) number of shares outstanding, and (5) market value of its shares. Smaller firms that cannot meet the listing requirements (but meet the statutory requirements) sell their securities (in the US) in over the counter market or (in the UK) in alternative investment market.

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