Business Acceptance

• The NYSE has a set of stringent listing requirements to ensure that potential listing companies are well recognized in their respective industries. Companies may be evaluated for their relative position and stability in the industry, as well as on the basis of whether they are in an expanding industry or their businesses have a certain degree of national interest. Companies listed on the NYSE often are well-managed and profitable companies. The NYSE requires that companies wishing to have their stocks listed must have a pretax income of $2.5 million for the most recent year and a minimum market value of $60 million. Gaining approval for a NYSE listing represents a certain level of business acceptance for a company.
  
  

Trading Liquidity

• The NYSE uses more market makers and specialists than other exchange to provide trading liquidity. Higher liquidity means lower volatility and price improvement, providing a high level of market quality and competitiveness for investors trading on the NYSE. The NYSE also employs the so-called supplemental liquidity providers that use completely electronic quotation systems to complement and add competition to the existing quote providers of floor brokers and other designated market makers. Having a liquid second-market trading place for a company's stock helps attract more investors in any future share issuance.
  
  

Shareholder Base

• While having a company's stock listed on the NYSE helps obtain name recognition and maintain an orderly second-market trading presence for company shareholders, it also helps expand a company's shareholder base over time. As more investors use the fair and competitive trading mechanism provided by the NYSE, the stocks listed on the NYSE are subject to more trading opportunities. A more widely-traded stock can potentially have a positive impact on a company's business side. As a company's stock gets more market coverage, its products can get more consumer exposure. Thus more shareholders may lead to more customers and revenue for the company.
  
  

Listing Scale

• Issuing stock is a good way to obtain cash capital even though it may be expensive, especially for NYSE listings. The initial listing fee for a NYSE listing ranges from $150,000 to $250,000, and the annual fee ranges from $35,000 to $500,000 depending on the total value of the listing. To be eligible for a NYSE listing, a company must meet a minimum number of publicly held shares, as well as a minimum number of shareholders who hold 100 shares or more. Companies already operating at scales that have met the NYSE requirements may want to consider a NYSE listing opportunity.