Stock Markets

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The Stock Markets
The main function of the stock market is to enable trade in the shares of public companies, which in turn reflect the performance of th3 companies whose shares are traded in the stock market. Stock markets are also a vital part of an economy or the economic system of a country or nation. Research has shown that most economies around the world, today, are judged by the performance of their stock markets.
To trade in the stock market, a company has to be transparent about its fundamentals such as revenue, income, assets, liabilities, etc. as it allows the investing public to make fair assessments of the company’s market worth. “These stock markets each, have their own listing of requirements” (Hirt & Block, 2012). The purpose of this paper is to discuss the stock listing requirements of the New York Stock Exchange and Nasdaq for comparative purposes.

The New York Stock Exchange Listing Requirements
3. a) How many round-lot holders are required to be listed? The amount of round-lot holders that are required are 400 U.S.
b) What is the required public share outstanding? The required public shares outstanding are 1,100,000.
c) Under Alternative #1, what are the earnings requirements to be listed?
The earnings requirements to be listed are $10 million aggregate pre-tax income for the last 3 years with a minimum of $2 million in each of the most recent years or,
$12 million aggregate pre-tax income for the last 3 years with a minimum of
$5 million in the most recent year.
d) What is the average global market capitalization requirement to be listed?
The average global market capitalization requirement to be listed is $475 million.
($500 +$750 +$500 + $150) = $475 million 4

The NASDAQ Listing Requirements
7. a) What pre-tax earnings are required?
The pre-tax earnings required is an amount that is more than or equal to $11 million aggregate in prior 3 fiscal years and each of the prior 3



References: Hirt, G.A., & Block, S.B. (2012). Fundamentals of Investment Management (10th ed.). New York: McGraw Hill Irwin. www.nyse.com https://listingcenter.nasdaqomx.com/assets/initialguide.pdf

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