Legal Definitions - listed

In finance, when a security is described as listed, it means that it has been formally approved for trading on a specific stock exchange or other organized marketplace.

For a company's shares or other financial instruments to be listed, the company must meet and maintain certain strict requirements set by the exchange. These often include criteria related to the company's size, financial health, transparency, and governance. Once a security is listed, it becomes readily available for public investors to buy and sell through the exchange, providing liquidity and a regulated trading environment.

• Example 1: A New Public Offering

  A burgeoning electric vehicle manufacturer, "ElectroDrive Motors," decides to offer its shares to the public for the first time. After a rigorous application process and demonstrating compliance with financial and governance standards, its shares are successfully listed on the Toronto Stock Exchange. This means that individual and institutional investors can now purchase and sell ElectroDrive Motors' stock through the exchange's regulated trading system.

• Example 2: An Established Company's Presence

  "Global Foods Inc.," a multinational food and beverage conglomerate, has had its common stock continuously listed on the Frankfurt Stock Exchange for over fifty years. This long-standing listing ensures that its shares are consistently available for trading by investors, providing a transparent and efficient platform for price discovery and investment activity in the company.

• Example 3: Dual Listing for Broader Access

  "AeroTech Innovations," a leading aerospace technology firm primarily based in France, decides to expand its investor reach beyond Europe. To attract more international capital, the company applies for and successfully gets its shares listed on the Nasdaq Stock Market in the United States, in addition to its existing listing on Euronext Paris. This dual listing makes AeroTech's securities accessible to a wider pool of investors across different time zones and regulatory environments.