Legal Definitions - listed stock

A listed stock refers to the shares of a company that have been formally approved for trading on a recognized stock exchange, such as the New York Stock Exchange (NYSE), Nasdaq, or the London Stock Exchange (LSE). For a company's stock to be listed, it must meet specific criteria set by the exchange, which often include minimum financial standards, public float requirements (the portion of shares available for public trading), and corporate governance standards. Once listed, these stocks can be bought and sold by investors through brokers on the exchange, providing liquidity, transparency, and regulatory oversight.

• Example 1: "Tech Innovations Inc." is a well-established multinational technology company whose shares are actively traded on the Nasdaq stock market under the ticker symbol "TII." Investors can easily find real-time prices, trading volumes, and company news through public financial platforms, and buy or sell shares through their brokerage accounts.

  Explanation: This illustrates a listed stock because Tech Innovations Inc.'s shares have met Nasdaq's stringent requirements and are formally available for public trading on that exchange, making them accessible to a wide range of investors and subject to Nasdaq's rules.

• Example 2: "Green Energy Solutions Corp.," a startup specializing in renewable energy, recently completed its Initial Public Offering (IPO) and had its shares approved for trading on the New York Stock Exchange (NYSE). This allowed the company to raise significant capital from public investors, who can now buy and sell Green Energy Solutions shares through their brokerage accounts.

  Explanation: Green Energy Solutions' shares became listed stock once the NYSE approved them for trading after the IPO. This means they now meet the NYSE's listing standards and are publicly available for exchange-based transactions, offering investors a regulated marketplace to trade them.

• Example 3: An investment fund specializing in large-cap companies only invests in securities that are part of major market indices. When "Global Logistics Ltd." was added to a prominent index, it was because its stock had been listed on a major international exchange for several years, demonstrating its stability and adherence to public trading regulations.

  Explanation: Global Logistics Ltd.'s stock qualifies as a listed stock because it is formally traded on a recognized exchange. This listing status is crucial for the investment fund, as it ensures the stock meets the fund's mandate to invest only in publicly accessible, regulated, and often more liquid securities.