Every club has its rules. You have to be 30 years old to get elected to the U.S. Senate. You have to be a superhero to join the Justice League. And so on.
Along the same lines, listing your stock on a public exchange has certain prerequisites. These rules represent the exchange’s listing requirements. They differ from exchange to exchange (the NYSE might have different rules than the London Stock Exchange, etc.). A company needs to meet the listing requirements in order to sell its shares on a particular exchange. If the stock falls below some requirement, the company will usually get some sort of warning. But if the problem isn't fixed, the stock could face delisting.
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Finance: What is the National Securities...1 Views
Finance allah shmoop what is the national securities markets improvement
act Okay dateline nineteen ninety six What's going on in
the world One thing The internet Everyone is getting wired
Everything is getting wired and not just on espresso Starbucks
was growing fast back then to computers everywhere talking to
each other Yeah with massive structural change in the way
in which people do business Nineteen ninety six brought about
the advent of myriad new securities laws which were needed
as an update or sequel to the Acts in the
30s:40s One key change in this era was that borders
among investors evaporated Afghanistan was as close by as peoria
when it came to a click on an investor keyboard
Sitting in the office at home Well the notion of
borders among states which was already vague became infinitely opaque
and essentially any covered Security iii and investment made in
any element of the public realm became by default kind
of nationally registered security rather than something that only had
to follow the rules of one state or another The
sec the national organization for managing securities laws took control
over virtually all securities laws and strike aided the rules
so that they were way more granular and detailed in
specific So what does all this mean Well it means
that the investing world was becoming the wild wild west
again on lee It had the dot com extension on
the end of it the broader goal here was to
simplify rules as much as possible without impinge ng on
the liquidity of investors wanting to invest you know in
their underwear In practice the state centric blue sky laws
were then transformed to the federal government's purview in the
form of the sec to promote fairness in dealing well
specific provisions of law to find which covered securities are
exempt from state regulations These included any securities traded on
the national exchanges You know like nasdaq or the a
swell A cz mutual fund shares right because they're run
by big boys Bottom line Well the world is getting
smaller The notion of local securities laws is well kind
of going away and everyone is a fan of that
whole underwear investing things Yeah it's kind of nice
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