NYSE MKT; Eligibility Part 1
Posted by Laura Anthony, Esq. on April 11, 2017
NYSE MKT; Eligibility Part 1- NYSE MKT Listing Requirements- A company seeking to list securities on NYSE MKT must meet minimum listing requirements, including specified financial, liquidity and corporate governance criteria. NYSE MKT has broad discretion over the listing process and may deny an application, even if the technical requirements are met, if it believes such denial is necessary to protect investors and the public interest. Factors the NYSE MKT consider include, but are not limited to, the nature of a company’s business; the market for its products; its regulatory history; its past corporate governance activities; the reputation of its management; its historical record and pattern of growth; its financial integrity; its demonstrated earning power and its future outlook.
Once listed, a company must meet continued listing standards. In order to apply for listing on NYSE MKT, a company must complete and submit a listing application including specified documents and information.
The NYSE MKT has 4 standards available standards that could be met to qualify for a listing. Each standard considers certain factors including pre-tax income, market capitalization, the market value of the public float, a minimum bid price, operating history, shareholder’s equity, the number of public shareholders and number of shares in the public float.
Generally speaking a company must have a minimum of $4 million in shareholder’s equity and a minimum bid price of $3 to qualify for NASDAQ. In addition, a company must have 400 public shareholders and either 500,000 or 1,000,000 public float shares depending on the standard of qualification. Depending on the standard used a company must have either (i) $750,000 of pre-tax income for the last fiscal year or 2 of the last 3 years and a market value of public float of $3 million; or (ii) a market value of public float of $15 million and 2 years operating history; (iii) a market value of public float of $15 million and $50 million market capitalization or (iv) a market value of public float of $20 million and a market cap of at least $75 million or $75million in assets and revenues.
Public shareholders and public float do not include shareholders or shares held directly or indirectly by any officer, director, or 10 percent or greater shareholder or their affiliates or family members.