Stock exchange listing requirements vary according to the exchange. Some of them have stricter requirements than others, like the NASDAQ. Generally, the stricter they are, the fewer companies are listed on them. Today, the NYSE and NASDAQ are the largest exchanges in the US. However, there are several alternatives available if you don’t qualify for them.
What Are Stock Exchange Listing Requirements?
To sell a stock, a company has to list on an exchange first. Otherwise, it’s not legal for them to issue stock to the public. Before they can qualify, they have to pass certain requirements. Each sets its own requirements, so they differ according to which one you’re using.
For example, companies must have greater than $11 million in revenue to go on the NASDAQ. Also, it has to maintain a market cap of more than $550 million for at least a year.
The NSYE has slightly lower requirements, even though they’re still strict. A company has to bring in over $10 million a year to go on there. Plus, it must have a global market cap of more than $200 million. Once it has issued shares, there must be at least 1.1 million of them given out.
There are over-the-counter markets where you may list companies with less than that. Since they are easier to get on, your stats don’t have to be as impressive.
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