New York Stock Exchange (NYSE): NYSE Listing Requirements and Historical Records

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)

Item	Period	Record	Date/Period
NYSE reported volume (shares)	First Hour Day Week Month Monthly daily average Quarter Quarterly daily average Year Annual daily average	279,300,000 1,201,347,000 4,011,852,000 14,031,737,000 610,076,000 36,316,305,000 567,442,000 133,312,115,000 526,925,000	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 $175,476,500,000 $625,726,800,000 $1,592,075,900,00 $5,777,601,500,000	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 3,118,840 11,025,902 479,387 28,465,046 444,766 102,550,351 405,337	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 2,922 2,568 2,303	June 17, 1988 Week ended July 1, 1988 June 1988 1988
NYSE warrant volume (units)	Day Week Month Year	12,611,900 23,292,200 35,938,300 260,062,600	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		643.81 481.05 336.15 500.42	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 6,873,633,900 60.6% 17,489,690,800 58.6% 67,832,129,000 57.0% 48,788,800	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	27,234 291,693 747,254 2,831,321	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 $9,413,109,000,000	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 50,853,330,000	October 1997 1997
Specialist	Month Year	3,647,340,000 29,181,898,000	October 1987 1997
Off-floor	Month Year	2,177,044,000 20,504,702,000	October 1997 1994
Customers' odd-lot trading (purchases and sales) (shares) Total round lot short sales	Month Year	113,684,000 1,091,350,000	October 1997 1997
Total	Month Year	1,407,119,000 12,821,793,000	October 1997 1997
Specialist	Month Year	631,009,000 5,275,635,000	October 1997 1997
Off-floor	Month Year	175,453,000 1,590,988,000	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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