the process of a company’s shares being officially listed on a stock exchange. This allows the company’s stock to be publicly traded, and the shares become available for purchase and sale by investors. A listing provides the company with access to capital, enhances its visibility, and increases liquidity for its shareholders.
To be listed on a stock exchange, companies need to meet specific requirements set by the exchange, which may include factors like:
- Financial Requirements: The company must meet minimum revenue, net income, or market capitalization thresholds.
- Corporate Governance: The company needs to demonstrate strong governance practices and disclose relevant information regularly.
- Public Interest: The company should have a sufficient number of shares in public hands and demonstrate a level of investor interest.
Some common stock exchanges for listing are:
- New York Stock Exchange (NYSE)
- NASDAQ
- London Stock Exchange (LSE)
- Bombay Stock Exchange (BSE) (India)
- National Stock Exchange (NSE) (India)
For an IPO (Initial Public Offering), a company first offers its shares to the public for the first time, and if it meets all the requirements, its shares will be listed on an exchange, which opens the door for trading.
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