Companies looking to move from the over-the-counte
Post# of 87012
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Posted On: 06/27/2020 12:20:43 AM
Companies looking to move from the over-the-counter market to a standard exchange must meet certain financial and regulatory requirements.
The company and its stock must meet listing requirements for its price per share, total value, corporate profits, daily or monthly trading volume, revenues, and SEC reporting requirements. For example, the NYSE requires newly listed companies to have 1.1 million publicly held shares held by a minimum of 2,200 shareholders with a collective market value of at least $100 million. Companies that want to list on the Nasdaq, on the other hand, are required to have 1.25 million public shares held by at least 550 shareholders with a collective market value of $45 million.
Second, it must be approved for listing by an organized exchange by filling out an application and providing various financial statements verifying that it meets its standards. If accepted, the organization typically has to provide written notice to its previous exchange indicating its intention to voluntarily delist. The exchange may require the company to issue a press release notifying shareholders about this decision.
While a lot of fanfare may occur when a stock is newly listed on an exchange—especially on the NYSE—there isn't a new initial public offering (IPO). Instead, the stock simply goes from being traded through the OTC market to being traded on the exchange.
Depending on the circumstances, the stock symbol may change. A stock that moves from the OTC to Nasdaq often keeps its symbol—both allowing up to five letters. A stock that moves to the NYSE often must change its symbol, due to NYSE regulations that limit stock symbols to three letters.
The company and its stock must meet listing requirements for its price per share, total value, corporate profits, daily or monthly trading volume, revenues, and SEC reporting requirements. For example, the NYSE requires newly listed companies to have 1.1 million publicly held shares held by a minimum of 2,200 shareholders with a collective market value of at least $100 million. Companies that want to list on the Nasdaq, on the other hand, are required to have 1.25 million public shares held by at least 550 shareholders with a collective market value of $45 million.
Second, it must be approved for listing by an organized exchange by filling out an application and providing various financial statements verifying that it meets its standards. If accepted, the organization typically has to provide written notice to its previous exchange indicating its intention to voluntarily delist. The exchange may require the company to issue a press release notifying shareholders about this decision.
While a lot of fanfare may occur when a stock is newly listed on an exchange—especially on the NYSE—there isn't a new initial public offering (IPO). Instead, the stock simply goes from being traded through the OTC market to being traded on the exchange.
Depending on the circumstances, the stock symbol may change. A stock that moves from the OTC to Nasdaq often keeps its symbol—both allowing up to five letters. A stock that moves to the NYSE often must change its symbol, due to NYSE regulations that limit stock symbols to three letters.
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