public listing

Question 1

why entities list

Answer 1

1.raise capital
2.enable trading of shares on market
3.stimulate liquidity in the company - enough cash or easily convertible assets to meet its short-term financial obligations

Question 2

why exchanges have requirements to list

Answer 2

maintain reputation, integrity, visibility

Question 3

listing requirements

Answer 3

set of conditions which a company must meet before listing a security on one of the organised stock exchanges. initial as well as ongoing requirements

Question 4

2 most important listing requirements

Answer 4

 size of the company (as defined by annual income or market capitalisation)
 liquidity of the shares (a certain number of shares must already have been issued).

Question 5

NSX requirements

Answer 5

 Share equity amounting to N$1 million.
 Minimum of 1,000,000 shares in issue.
 Profitable trading record for three years.
 Current audited profit of at least N$500,000 annual before taxation and interest.
 Minimum of 20% of the shares to be held by the public.
 Minimum of 150 shareholders.
 Auditor’s reports for the previous three years
 An acceptable record of business practice and management integrity

Question 6

why delisted

Answer 6

 If companies fail to pay annual fees
 they can no longer meet the financial and liquidity requirements of an exchange
 share prices drop below a certain minimum
 failure to file timely financial reports

Question 7

dual listing

Answer 7

a particular security is listed on more than one exchange. (DLC)