Listing – What is the listing process? – (30)

financial tests. Qualitative requirements are standards relating to the company’s business and corporate governance, including the nature of the company’s business, the market for its products, its regulatory history, as well as the election and composition of the board of directors and audit committee, issuance of earning statements and the company’s shareholder approval requirements. Especially since the passage ofSarbanes-Oxley and now Dodd-Frank, there has been significant convergence of the exchanges’ corporate governance requirements, some of which are already discussed in these FAQs.
What is the listing process?
To list its securities on an exchange, a company must meet the quantitative and qualitative requirements and submit an application to the exchange. The NYSE and the NYSE MKT require that the company participate in a confidentialpre-application eligibility review in order to determine whether the company meets its listing criteria. NASDAQ offers a similar preliminary listing eligibility review. In order for shares to be listed on the exchange, in addition to filing a registration statement for the IPO itself under the Securities Act, the issuer must also file a registration statement under the Exchange Act that acts as the continuing registration statement for the company after the IPO is completed. If the exchange listing is in conjunction with the IPO, the Exchange Act registration statement is a brief filing consisting primarily of cross-references to the Securities Act IPO registration statement. The exchange will review the application and supporting documentation and once the listing is approved, the shares will be admitted for trading after the Exchange Act and, if applicable, Securities Act registration statements have been declared effective by the SEC and the shares have

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