Case Study The New York Stock Exchange imposes distribution and quantitative criteria that companies must meet in order to list stocks on the Big Board. The exchange also states that it maintains broad discretion regarding a firm's listing and may deny listings or apply additional or more stringent criteria as circumstances warrant. Below are domestic standards for listing securities on the New York Stock Exchange (separate standards apply to affiliated companies and non-U.S. companies). Minimum Distribution Criteria 2,000 round-lot (generally, 100 shares) shareholders, or 2,200 total shareholders together with 100,000-share average monthly trading volume during the most recent 6 months, or 500 total shareholders together with one-million-share average monthly trading volume during the most recent 12 months.
One million public shares. $100 million market value of public shares for a public company, or $60 million market value for a spinoff, carve-out, or IPO.
Minimum Quantitative Standards Aggregate pretax earnings the last three years of $6.5 million achieved as $2.5 million in the most recent year and $2 million in each of the two preceding years, or Pretax earnings of $4.5 million in the most recent year, although each of the last three years must be profitable, or $25 million of aggregate operating cash flow for the last three years (each year must report a positive amount) for companies with over $500 million in global market capitalization and over $100 million in revenues of the last 12 months, or $100 million in revenues during the last fiscal year and average global market capitalization of $1 million.
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