Page 111 - Initial Public Offering - An Introduction to IPO on Wall Street

Continued Listing Standards:

The Exchange must usually take into account the immediate initiation of termination and
declassification proceedings concerning the security of a domestic or non-US issuer when:

802.01A Capital or Common Stock (including Equity Fund Monitoring Stock) Allocation
Criteria:

Total number of stockholders (A) fewer than 400

OR:

 The total number of shareholders (A) is fewer than 1,200; and
 The average monthly trading volume (for the last 12 months) is fewer than 100,000 shares

OR:

The number of shares (B) owned by the public is fewer than 600,000 (C)

(A) In addition to holders of documents, the volume of beneficial holders of stock held on
behalf of Exchange member organizations shall be considered.
(B) In the estimation of the number of publicly owned securities, shares held by directors,
officers, or their respective families and other consolidated assets of 10 percent or more are
exempted.
(C) Where the unit of exchange is fewer than 100 shares, the condition relating to the number
of publicly owned shares shall be proportionately decreased.

Above are all the requirements that organizations need to meet to be listed on NASDAQ and
the New York Stock Exchange (NYSE). However, it is important to keep in mind that these
major stock exchanges want to stay exclusive as their reputation depends significantly on the
businesses they list.

Therefore, your company will need to have a solid history and an experienced/highly reputable
management for NASDAQ and NYSE to consider it for listing on their exchanges.

Page 111