5.5.1. Listing Requirements
Before a company can trade its security on an exchange, it must meet certain listing standards, which are set out by the exchange itself. To qualify for listing, the issuer’s stock must have an approved prospectus, and it must meet certain minimum thresholds of size and liquidity, including minimum number of shares, minimum number of shareholders, minimum price per share, and total market value.
The New York Stock Exchange is the most well-known auction market exchange. More than 3,300 companies are listed on the NYSE, which has extremely stringent initial and continued listing requirements.
Initial listing requirements include:
• Initial listing fee ($125,000 to $250,000, plus a $50,000 application fee)
• Annual fees are based on the number of shares outstanding ($59,500 minimum)
• Minimum shareholders (at least 400 shareholders of a round lot or more)
• Minimum number of shares (1.1 million shares outstanding for IPOs)
• Minimum market ca