Listing (finance)

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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.

Contents

Normally the issuing company is the one that applies for a listing but in some countries[ which? ] 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.

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:

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 stock volumes on the exchange from which it wishes to delist are not significant. Delisting does not necessarily mean a change in company's core strategy. [4]

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.

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Eros International plc was an Indian multinational global mass media conglomerate. It generally works in the Indian film and entertainment industry. It co-produced, acquired and distributed Indian language films through its film production and distribution subsidiary, Eros International and distributes them in multiple formats worldwide. The group distribution network includes over 50 countries and has offices in India, the United Kingdom, the United States, the United Arab Emirates, Australia, Fiji and the Isle of Man. Kishore Lulla, the son of the founder Arjan Lulla, was the chairman of Eros International plc before its merger with STX Entertainment.

References

  1. ↑ "Archived copy". Archived from the original on 2013-08-21. Retrieved 2020-03-16.{{cite web}}: CS1 maint: archived copy as title (link)
  2. ↑ "Applications, Notifications & Guides - Nasdaq Listing Center". nasdaq.com.
  3. ↑ "BSE Ltd. (Bombay Stock Exchange) - Live Stock Market Updates for S& BSE SENSEX, Stock Quotes & Corporate Information". bseindia.com.
  4. ↑ "CORRECTED - UPDATE 1-Allianz to delist from NYSE and European exhanges". Reuters . 22 September 2009. Archived from the original on 2023-05-26.


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