Stock Exchanges

Stock Exchanges

Any publicly held company should strive to have its shares listed on a stock exchange, since doing so makes it much more likely that there will be regular trading in its stock
1. Stock exchange is a physical location ot an electric system, on which investors buy and sell securities
  1. Creates an orderly market, which makes it easier for transactions to be completed
    1. Trading volume
    2. Price volatility
    3. Acquisition currency
    4. Prestige
    5. Reduced bid-ask price spread
The steps for doing so vary somewhat by exchange, but generally follow these steps
1. Alter bylaws
2. File application
3. Investigation
4. Reserve ticket symbol
5. Set trading date
6. Begin trading
The stock exchange that has the most prestige and sets the most difficult listing standard is the New York Stock Exchange
1. It takes time to build sufficient mass to justify being on this exchange
  1. The NYSE purchased the American Stock Exchange and now calls this exchange the NYSE MKT
    1. This exchange is designed for much smaller companies than those found on the NYSE
The NASDAQ is a cpmputerized system that provides price quotations and facilitates the purchase and sale of securities
1. The global select market has the most rigorous standards. because its designed to compete with the NYSE
  1. The NASDAQ global market has listing standards that sandwich it between the NASDAQ global select market and the NASDAQ capital market
    1. The NASDAQ capital market imposes the easiest listing standards which makes it a direct competitor to the NYSE MKT
The major stock exchanges described in the preceding sections are by no means the only ones on which a company can list its shares
1. The Toronto Stock Exchange and other exchanges like it, have designed their listing requirements to make it relatively easy for a smaller company to be listed
  1. Australian Securities Exchange
  2. Deutsche Bourse
  3. Hong Kong Stock Exchange
  4. London Stock Exchange
  5. Shanghai Stock Exchange
  6. Tokyo Stock Exchange
Ongoing standards may include the maintenance of minimum amounts for a combination of:
1. The number of publicly traded shares
2. Total market value
3. Stock price
4. The number of shareholders
5. A market maker is a broker-dealer that facilitates trading in a security by displaying buy and sell quotations for the issuing company´s shares, for which it may sell from its own inventory
The over the counter market is known as the Over the Counter Bulletin Board
1. Its a stock listing service that shows real-time quotes, last-sale price, and volume information for all securities listed on the OTCBB
  1. Is not a formal stock exchange, but rather the default designation given to a company that is not listed on a stock exchange but which is current in its filings with the SEC
    1. There are no other requirements for being listed on the OTCBB
If a company is remiss in its SEC filings or has gone private, its shares will be listed on the Pink Sheets
1. This is essentially the default listing for the securities of a company that doesnt expend any effort to make its financial results known to the public
  1. The Pink Sheets are administred by OTC Markets Group, Inc.

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