what is a listed security 
a listed security is a financial instrument that is traded through an exchange such as the new york stock exchange nyse or nasdaq a listed security may be a stock bond or a derivative these listed securities can be bought and sold on the open market private companies that go public must choose an exchange where they plan to be listed and meet its listing requirements companies that issue stock launch their listing through an initial public offering ipo understanding listed securitiesas noted above a listed security is any financial instrument that can be bought and sold on an exchange listed securities may be bonds or stocks they may also be more complex assets such as derivatives these securities are vital as they provide much needed liquidity to the financial markets they also help connect buyers and sellers there are several steps and requirements that issuers need to meet before they can list their securities on an exchange like the nyse or the nasdaq the following are the general steps they must take after the ipo is complete trading begins on the secondary market companies that are listed must follow through with regular filings and continue to meet the exchange s financial requirements if the company fails to comply with these conditions its security will be delisted delisted securities that can no longer be traded on an exchange may trade over the counter the over the counter otc market does not have listing requirements listing requirements vary by exchange and include minimum stockholder s equity a minimum share price and a minimum number of shareholders exchanges have listing requirements to ensure that only high quality securities are traded on them and to uphold the exchange s reputation among investors types of listed securitiesstocks are among the most common listed securities companies that want to list their shares must go through the ipo process which means selling shares on the primary market this process involves creating a plan to go public completing all the necessary paperwork and hiring an underwriter to oversee the process once the ipo is completed trading can begin on the secondary market while an ipo is reserved for institutional investors the secondary market is where investors and traders buy and sell their shares this arena not only allows small investors to participate in the financial market but it also gives the market liquidity bonds are debt securities companies that issue bonds essentially borrow money from the investor the investor buys a bond for the face value the principal amount in exchange they receive their principal investment and interest at regular intervals and or at maturity bonds are issued by governments and corporations they allow issuers to raise money for different reasons including funding new purchases or growing their business since they are loans the issuers must repay their investors also known as bondholders and creditors regardless of whether they earn a profit a derivative is a complex financial security it is financial contract that is traded over an exchange the value of the contract is dependent on the value of the underlying asset which can include commodities currencies options or futures contracts are agreed upon by two parties the buyer and seller listing securities on the nasdaq is considerably less expensive than listing on the nyse as such newer companies often opt for the nasdaq if they meet its requirements fees are based on a listing company s outstanding shares 1requirements to become a listed securitythe exchange a company chooses can affect how investors perceive the stock some companies choose to cross list their securities on more than one exchange we ve listed some of the basics of listing a security on the nyse and the nasdaq below keep in mind that listing requirements for other exchanges may differ companies that want to be listed on the nyse must go through several steps if a new listing is an ipo the nyse requires a guarantee from the ipo underwriter that the ipo will meet the board s standards 3the listing process can take anywhere from four to six weeks companies that want to list their securities must these steps can be done on paper or electronically online 4just like the nyse issuers must meet the requirements of the financial market to which they apply for instance the requirements vary between the nasdaq global select market the global select market the nasdaq global market and the nasdaq capital market these conditions include market cap market value market makers and total assets among others 5