when stock is trying to get listed on a senior exchange

Discussion in 'Stocks' started by gabe, Apr 11, 2007.

  1. gabe



    i was going through news on a few different stocks and one of them had just engaged in an audit so they can make all their financial stuff public. because of this, hopefully, they will be all clear to join the NASDAQ. i guess they are also looking at what the true value of the stock should be when (if) it 'moves up.'

    what does this usually mean for a company? can it ever be a bad thing?

    thanks for any help
  2. moving to the nasdaq from either the Amex, Otc, or pinksheets is a positive event. Most stocks that make a transition rally in anticipation of transition but may selloff after the trasition. In the long term moving to a larger exchange allows for insitutional accumulation which is good.
  3. 2ticks


    Audited financials, by themselves, do not determine whether or not a company can list on a recognized exchange. It is a requirement for listing, but the content of the financials determines listing eligibility (in addition to listing fees, and ongoing accounting and legal fees). Not all companies should be public even if they do qualify.

    And what you call "true value" is called "perception" in the market. Sometimes perception equals reality, sometimes not. NEW traded above 60 not long ago.

    And can listing ever be a bad thing? One thing comes to mind immediately: REFCO. Increased visibility and transparency isn't always a good thing, at least for shareholders.
  4. Add VG to the list where increased visibility and transparency isn't always a good thing.
  5. Nasdaq also requires a $5 min bid, so there's usually a reverse split
  6. Right, $5 minimum bid for listing, $1 minimum closing bid for ongoing listing. And then there are the shares, shareholders, market makers, market value, etc, requirements. All in addition to audited financials and required minimum values of the financial content.