Stock Exchange Listing Requirements
Major Exchanges
The New York Stock Exchange (NYSE) and NASDAQ are the most reputable listed markets in the United States. The NYSE Archipelago Exchange (NYSE ARCA) and NYSE American (NYSE American) are popular alternative listed markets for companies that are not eligible to list directly on the NYSE. Corporations that are listed on these exchanges must follow a specific set of guidelines set forth by the SEC.
Major Exchanges |
Description |
Listing Requirements |
NASDAQ |
NASDAQ is an electronic exchange that is the second largest exchange by market capitalization in the world, only behind the NYSE. |
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NYSE |
NYSE is the largest exchange in the world by market capitalization and trades approximately at least five times more volume than any other exchange. |
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NYSE ARCA |
NYSE Arca operates a fully electronic communication network and exchange for both stocks, ETF and options. The exchange provides the largest offering of public ETFs. |
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NYSE American |
NYSE American, formerly known as the American Stock Exchange and later NYSE American, is the NYSE exchange designated for small-cap growth companies. |
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IEX |
IEX was designed to help protect investors by not allowing high-frequency traders to make unfair trades ahead of other investors. |
Over-the-Counter Marketplace
There are two markets that aren't considered listed exchanges: the Over-the-Counter Bulletin Board (OTCBB) and OTC Markets. The OTCBB and OTC Markets list small and micro-cap companies that are publicly traded and classify the companies into eight separate tiers. The tiers are based on a company's dependability, SEC reporting status, constancy of market volume and share price as follows:
OTC Exchanges |
Description |
Listing Requirements |
OTCQX |
Lists companies that meet high financial standards, are current in their SEC reporting, and are sponsored by a third-party advisor. |
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OTCQB |
Lists companies that are current with their reporting, adhere to annual management certifications, and meet bid price requirements. |
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OTC Pink |
Lists companies in an open marketplace that offers a wide spectrum for trading through any broker. Further status designations within the OTC Pink can be seen below. |
OTC Pink (Status Symbols) |
Description |
OTC Pink |
Companies that provide current financial data, however, may be at some form of risk. |
OTC Pink |
Companies who do not wish to provide up-to-date financial data. The previously disclosed financial data was disclosed within 180 days. |
OTC Pink |
Companies that are at a greater risk as they also do not wish to provide up-to-date financial data. The previously disclosed financial data was disclosed more than 180 days prior. |
Grey Market |
Companies that are not currently traded on OTCQX, OTCQB or OTC pink marketplaces. Broker-dealers are not willing to publicly quote these securities because the company lacks public information, investor interest or regulatory compliance. |
Caveat Emptor |
Latin for buyer beware. OTCMarkets.com has suspended quotes for the security because of a risk of litigation, suspensions, or previous public scrutiny. |
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