public companies provide in their annual proxy statements, including a discussion of compensation philosophy, an analysis of how compensation programs implement that philosophy and a discussion of the effects of risk-taking on compensation decisions. An EGC will have reduced compensation disclosure requirements. See “What disclosures may an EGC make?”.
Listing
What are the benefits of listing on an exchange?
Listing the stock on an exchange is one of the most important steps a company can take to achieving liquidity. Certain kinds of investors may only invest inexchange-listed issuers. Liquidity and an active market should help establish a widely recognized value for the company’s stock, which will help the company use its stock instead of cash for acquisitions and other significant transactions. Listing on an exchange cannot guarantee liquidity or investor interest and there are many companies that have liquid markets even though they are traded in theover-the-counter (“OTC”) markets such as OTCQX and OTCPink. However, particularly since the rise of the alternative trading markets, such as
“dark pools,” it is usually beneficial for a company to list on an exchange.
What are exchange requirements to list a stock?
Exchange listing requirements may be generally described as “quantitative requirements” and “qualitative requirements.” Quantitative requirements are financial criteria for listing and include a minimum number of shareholders of the company, a minimum market capitalization, a minimum share price and
public companies provide in their annual proxy statements, including a discussion of compensation philosophy, an analysis of how compensation programs implement that philosophy and a discussion of the effects of risk-taking on compensation decisions. An EGC will have reduced compensation disclosure requirements. See “What disclosures may an EGC make?”.
Listing
What are the benefits of listing on an exchange?
Listing the stock on an exchange is one of the most important steps a company can take to achieving liquidity. Certain kinds of investors may only invest inexchange-listed issuers. Liquidity and an active market should help establish a widely recognized value for the company’s stock, which will help the company use its stock instead of cash for acquisitions and other significant transactions. Listing on an exchange cannot guarantee liquidity or investor interest and there are many companies that have liquid markets even though they are traded in theover-the-counter (“OTC”) markets such as OTCQX and OTCPink. However, particularly since the rise of the alternative trading markets, such as
“dark pools,” it is usually beneficial for a company to list on an exchange.
What are exchange requirements to list a stock?
Exchange listing requirements may be generally described as “quantitative requirements” and “qualitative requirements.” Quantitative requirements are financial criteria for listing and include a minimum number of shareholders of the company, a minimum market capitalization, a minimum share price and
