NYSE and Nasdaq Listing Requirements Compliance

Summary

This practice note discusses the listing requirements of the New York Stock Exchange (NYSE) and the Nasdaq Stock Market (Nasdaq). In most initial public offerings (IPOs), the underwriters will require the company to have its securities listed on a securities exchange registered with the U.S. Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934, as amended (Exchange Act). The NYSE and Nasdaq are the two largest national securities exchanges registered with the SEC. Listing the shares on a securities exchange is critical to achieving liquidity in the company's stock, and the company will want to ensure it selects the exchange that is most suitable to its particular circumstances. Factors the company should consider in selecting an exchange include the listing requirements for the exchange, industries commonly listed on the exchange, the size of companies typically listed on the exchange, and trading volume on the exchange.