New York Stock Exchange (NYSE): NYSE Listing Requirements and Historical Records
Over 80 percent of American securities are traded on the NYSE, the oldest and largest of all United States stock exchanges. In 1991, over 10,000 institutions managing $3.5 trillion in securities had access to and used the NYSE market.
New York Stock Exchange (NYSE)
11 Wall Street
New York, NY 10005
(212) 656-3000
Founded: 1792
Members/Seats: 1,420 members; 1,366 seats
Companies/Issues listed: 1,885 companies, 2,426 issues
To contact NYSE use this link
www.nyse.com
Listing Requirements
To be listed on the New York Stock Exchange, a company is expected to meet certain qualifications and to be willing to keep the investing public informed on the progress of its affairs. The company must be a going concern, or be the successor to a going concern. In determining eligibility for listing, particular attention is given to such qualifications as: 1 ) the degree of national interest in the company; 2) its relative position and stability in the industry; and 3) whether it is engaged in an expanding industry, with prospects of at least maintaining its relative position.
Initial Listing
While each case is decided on its own merits, the NYSE generally requires the following as a minimum:
Demonstrated earning power under competitive conditions of: either $2.5 million before Federal income taxes for the most recent year and $2 million pre-tax for each of the preceding two years, van aggregate for the last three fiscal years of $6.5 million together with a minimum in the most recent fiscal year of $4.5 million. (All three years must be profitable.) The adjusted net income standard is designed to provide the opportunity for substantial companies that are valued more on the basis of "cash flow" than reported income to list on the Exchange. The NYSE will consider each company on a case by case basis.
- Net tangible assets of $40 million, but greater emphasis is placed on the aggregate market value of the common stock.
- Market value of publicly held shares, subject to adjustment depending on market conditions, within the following limits:
Maximum $40,000,000
Minimum $9,000,000
Present (12/31/97) $40,000,000
(The market value requirement is subject to adjustment, based on the NYSE Composite Index of common stock prices. The base in effect as of December 31, 1991 is the Index on July 15, 1971 [55.06]. The Index as of January 15 and July 15 of each year [if lower than the base] is divided by the base, and the resulting percentage is multiplied by $40 million to produce the adjusted market value standard. The adjustment formula is used only when the current index is below the base.)
- A total of 1,100,000 common shares publicly held. (If the unit of trading is less than 100 shares, the requirement relating to number of publicly held shares shall be reduced proportionately.)
- Either 2 000 holders of 100 shares or more, or of a unit of trading if less than 100 shares, or 2,200 total stockholders together with average monthly trading volume (for the most recent six months) of 100,000 shares, or 500 total shareholders together with average monthly trading volume of one million shares (for the most recent twelve months).
For companies with not less than $500 million in Market Capitalization and $200 million in revenues in the most recent fiscal year, there is an adjusted net income standard which removes the effects of all items whose cash effects are investing or financing for the last three fiscal years (each year must report a positive amount), with a minimum of $25 million in aggregate.
Non-U.S. Companies -- alternative listing standards
To provide an alternative set of listing standards for companies organized outside the United States that meet the normal size and earnings measures for NYSE listings, the NYSE will consider the acceptability of such companies' shares and shareholders on a worldwide basis.
In view of the widespread use of "bearer" shares in other countries, in contrast to the U.S. practice of registered shares, a company would find difficulty in certifying the requirement of 5,000 round-lot shareholders on a worldwide basis. Therefore, the NYSE requires that a member firm attest to the liquidity and depth of the market for the company's shares. These standards would apply only where a broad, liquid market for a company's shares in the company's home market exists.
Continued Listing
The appropriateness of a continued listing of a security on the NYSE cannot be measured mathematically. The NYSE may at any time suspend or delist a security where continued dealings in the security are not considered advisable, even though a security meets or fails to meet any specified criteria. For example, the NYSE would normally give consideration to suspending or removing from the list a security of a company when there are:
1. Fewer than 400 total holders.
2. Number of total holders is less than 1,200 end average monthly trading volume is less than 100,000 shares (for most recent 12 months.)
3. 600,000 shares or fewer in public hands.
4. Aggregate market value of publicly held shares, subject to adjustment depending on market conditions, within the following limits:
Maximum $8,000,000
Minimum $2,500,000
Present (12/31/97) $8,000,000
5. Aggregate market value of shares outstanding-is less than $12,000,000 and average net income after taxes for the past three years is less than $600,000.
6. Net tangible assets available to common stock of less than $12,000,000 and average net income after taxes for the past three years is less than $600,000.
(The market value standards for continued listing are subject to an adjustment formula similar to that for a new listing. The major difference is that here the percentage is multiplied by $5 million.)
Listing Agreement
The listing agreement between the company and the NYSE is designed to provide timely disclosure to the public of earnings statements, dividend notices, and other information which might reasonably be expected materially to affect the market for securities. The NYSE requires actively operating companies to agree to solicit proxies for all meetings of stockholders.
Other Securities
The NYSE's listing standards for other securities cover the listing of, but are not limited to, common stock warrants, foreign currency warrants, currency index warrants, stock index warrants, contingent value rights, equity linked debt securities and other securities such as trust preferred securities, equity trusts that securitize commodities such as oil and gas, and other structured products.
Historical Records of the New York Stock Exchange (NYSE)
| NYSE reported volume (shares) | First Hour Day Week Month Monthly daily average Quarter Quarterly daily average Year Annual daily average |
279,300,000 |
December 15, 1995 October 28, 1997 Week ended October 31, 1997 October 1997 October 1997 Fourth quarter, 1997 Fourth quarter, 1997 1997 1997 |
| NYSE reported dollar value of trading | Day Week Month Quarter Year |
$51,936,600,000 |
October 28, 1997 Week ended October 31, 1997 October 1997 Fourth quarter 1997 1997 |
| NYSE reported trades | Day Week Month Monthly daily average Quarter Quarterly daily average Year Annual daily average |
956,302 |
October 28, 1997 Week ended October 31, 1997 October 1997 October 1997 Fourth quarter 1997 Fourth quarter 1997 1997 1997 |
| NYSE average shares per reported trade | Day Week Month Year |
4,924 |
June 17, 1988 Week ended July 1, 1988 June 1988 1988 |
| NYSE warrant volume (units) | Day Week Month Year |
12,611,900 |
May 15, 1975 Week ended May 16, 1975 August 1990 1990 |
| NYSE Composite Index | Daily close |
514.31 |
December 5, 1997 |
| Industrial Transportation Utility Finance |
643.81 |
December 5, 1997 October 7, 1997 October 22, 1997 December 30, 1997 December 8, 1997 |
|
| NYSE block transactions Volume (shares) | Day Month Monthly % of reported volume Quarter Quarterly % of reported volume Year Yearly % of reported volume Largest block |
629,952,100 |
October 28, 1997 October 1997 June 1988 Fourth quarter, 1997 First quarter, 1995 1997 1995 April 10, 1986 |
| NYSE block transactions | Day Month Quarter Year |
27,234 |
October 28, 1997 October 1997 Fourth quarter, 1997 1997 |
| NYSE short interest (shares) | Mid-month |
3,667,253,305 |
December 15, 1997 (Settlement date) |
| NYSE listed securities | Month-end | ||
| Shares Market value |
207,088,500,000 |
December 1997 December 1997 |
|
| Securities market credit | Month-end | ||
| Customer margin debt |
$128,190,000,000 |
October 1997 | |
| Free credit balances in margin accounts |
$31,410,000,000 |
December 1997 | |
| Free credit balances in cash accounts |
$52,160,000,000 |
December 1997 | |
| Member trading (purchases and sales) (shares) | |||
| Total member trading | Month Year |
5,837,834,000 |
October 1997 1997 |
| Specialist | Month Year |
3,647,340,000 |
October 1987 1997 |
| Off-floor | Month Year |
2,177,044,000 |
October 1997 1994 |
| Customers' odd-lot trading (purchases and sales) (shares) Total round lot short sales | Month Year |
113,684,000 |
October 1997 1997 |
| Total | Month Year |
1,407,119,000 |
October 1997 1997 |
| Specialist | Month Year |
631,009,000 |
October 1997 1997 |
| Off-floor | Month Year |
175,453,000 |
October 1997 1997 |
| NYSE membership sale | Cash transfer |
$1,750,000 |
December 23, 1997 |
| Source: Fact Book / New York Stock Exchange, NYSE 1997 | |||
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