Listed Security

A financial instrument that is traded through an exchange, such as the NYSE or Nasdaq. When a private company decides to go public and issue shares, it will need to choose an exchange on which to be listed. To do so, it must be able meet that exchange's listing requirements and pay both the exchange's entry and yearly listing fees. Listing requirements vary by exchange and include minimum stockholder's equity, a minimum share price and a minimum number of shareholders. Exchanges have listing requirements to ensure that only high quality securities are traded on them and to uphold the exchange's reputation among investors.

Listing on the Nasdaq is considerably less expensive than listing on the NYSE, so newer companies often opt for the Nasdaq if they meet its requirements. The exchange a company chooses to be listed on can affect how investors perceive the stock. Some companies choose to cross-list their securities on more than one exchange.

If a stock fails to comply with the exchange's listing requirements, it will be delisted. Delisted securities that can no longer be traded on an exchange will sometimes be traded over the counter. The over-the-counter market does not have listing requirements.


Investment dictionary. . 2012.

Look at other dictionaries:

  • listed security — stock or bond that has been accepted for trading by one of the organized and registered securities exchanges in the United States. Generally, the advantages of being listed are that exchanges provide: (1) an orderly marketplace; (2) liquidity;… …   Financial and business terms

  • listed security — A security of a company that has met the registration requirements of the SEC and has been accepted for trading on a securities exchange, having complied with the rules of the stock exchange on which it is traded. Such requirements include… …   Black's law dictionary

  • listed security — A security of a company that has met the registration requirements of the SEC and has been accepted for trading on a securities exchange, having complied with the rules of the stock exchange on which it is traded. Such requirements include… …   Black's law dictionary

  • listed security — Fin a security listed on an exchange …   The ultimate business dictionary

  • listed security — noun a security that has been accepted for trading by one of the organized and registered securities exchanges in the US • Ant: ↑unlisted security • Hypernyms: ↑security, ↑certificate …   Useful english dictionary

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  • listed security exchanges — Organized secondary security markets that operate at designated places of business. The New York Stock Exchange (NYSE) is an example of a listed security exchange …   Black's law dictionary

  • qualified listed security — Fin a security that is eligible for purchase by a regulated entity such as a trust …   The ultimate business dictionary

  • listed stock — n. Stock in a company that meets the Securities and Exchange Commission’s requirements and is traded on an organized stock exchange; also called a listed security. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc.… …   Law dictionary

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