Listed
Candlefocus EditorListed companies must disclose important corporate information to the public on a regular basis. This includes financial statements, notices of dividends and other important announcements. Detailed information about executive compensation and insider trading activities must also be submitted. Additionally, when major changes occur at the company, those changes must be properly disclosed to the public.
In the event that a company fails to meet the exchange requirements, it can be delisted from the exchange. This typically occurs when the company no longer meets the minimum standards of liquidity, capitalization and operating performance. On occasion, a company will be delisted as a result of its being bought out by another company or by private investors.
It should be noted that organizations which do not meet the standards of a stock exchange still have the option to raise capital by issuing stock to the public. This process is known as issuing stock over-the-counter, and it enables companies to offer stock to the public without being listed on an exchange.
In summary, listed companies offer advantages to investors as they must adhere to certain regulations and exchange rules in order to keep their listing. Furthermore, delisting may occur when a company fails to meet exchange requirements or if it is the subject of a buyout. Finally, companies that do not meet exchange standards can still offer stock to the public via the over-the-counter market.