Listed
"Listed" describes companies that are included and traded on a given stock exchange. According to The Street, the Nasdaq also requires companies to meet all of the criteria under at least one of the following standards: **Earnings standard:** The company must have aggregate pre-tax earnings in the prior three years of at least $10 million, in the prior two years of at least $2 million, and no single year in the prior three years can have a net loss. **Capitalization with cash flow:** Companies can qualify to be on the Nasdaq under different standards: equity standard, market value of listed securities standard, or net income standard. **Capitalization with revenue:** Companies can be removed from the cash flow requirement of the second standard if their average market capitalization over the past 12 months is at least $850 million and revenues over the prior fiscal year are at least $90 million. **Assets with equity:** Companies can eliminate the cash flow and revenue requirements, and decrease their marketing capitalization requirements to $160 million if their total assets total at least $80 million and their stockholders' equity is at least $55 million.
What Is "Listed"?
"Listed" describes companies that are included and traded on a given stock exchange. Most exchanges have specific requirements that companies must meet in order to be listed and continue to stay listed.
Understanding the Term "Listed"
Companies are being added to a given exchange, such as the Nasdaq. Occasionally, companies that have not fulfilled all necessary listing requirements become delisted until they again meet the requirements. Generally, companies prefer to be listed on the major exchanges, such as the New York Stock Exchange (NYSE) and Nasdaq since they provide the most liquidity and visibility for a company's stock.
To be listed on Nasdaq, each company must meet at least one of four requirements and follow set rules.
Requirements to be listed on the Nasdaq Exchange
Companies can qualify to be on the Nasdaq under different standards: equity standard, market value of listed securities standard, or net income standard. Broadly speaking, however, the main requirements include the following:
According to The Street, the Nasdaq also requires companies to meet all of the criteria under at least one of the following standards:
Related terms:
Asset
An asset is a resource with economic value that an individual or corporation owns or controls with the expectation that it will provide a future benefit. read more
Australian Securities Exchange (ASX)
The Australian Securities Exchange acts as a market operator, clearing house and payments facilitator and provides educational materials to retail investors. read more
Beneficial Owner
A beneficial owner is the true owner of an asset or security that is under a different legal name. read more
Cash Flow
Cash flow is the net amount of cash and cash equivalents being transferred into and out of a business. read more
Closing Price
Even in the era of 24-hour trading, there is a closing price for a stock or other asset, and it is the last price it trades at during market hours. read more
Equity : Formula, Calculation, & Examples
Equity typically refers to shareholders' equity, which represents the residual value to shareholders after debts and liabilities have been settled. read more
Exchange
An exchange is a marketplace where securities, commodities, derivatives and other financial instruments are traded. read more
Fiscal Year (FY)
A fiscal year is a one-year period of time that a company or government uses for accounting purposes and preparation of its financial statements. read more