The United States of America is one of the most suitable nations for an individual or a firm to invest their resources due to its friendly business environment. The government has also adopted laws allowing non-US firms interested in their vast markets to go public. However, there are various requirements that a non-US firm must fulfill for the entity to obtain a legal listing in the nation (Meagher et al., 2020). The New York Stock Exchange is one of the major stock markets in the United States of America due to its diverse sector that provides investors with a wide range of considerable market sectors.
Requirements for Non-US Firms to Be Considered for Listing
One of the critical considerations for a non-US organization to obtain a listing in the New York Stock Exchange market is active trading. The American government strives to improve its economic performance to enhance financial stability. Firms that are active in business in different sectors of the economy enable the nation to have a stable economy (Meagher et al., 2020). Hence, the government will easily consider a firm with a diversified portfolio active in business and trading to acquire a New York Stock Exchange listing.
Another major factor for consideration is whether the firm has superior liquidity within the market (Meagher et al., 2020). Superior liquidity is considered since the firm’s security takes little to sell or purchase. Other significant requirements include the firm’s ability to grow and break even steadily and a good chain of investors.
Requirements for Non-US Firms to Be Considered for Listing Continuation
The New York Stock Exchange market also has various standards that a firm must satisfy to maintain its listing in the stock market. One of the significant requirements is that the company keeps the minimum distribution levels required in the market. The stockholders within the firm must be more than 400, while the amount of publicly held shares must be more than 600,000 (Meagher et al., 2020). The firm should also meet the minimum financial standards, which require the firm to have a global market capitalization within a month of more than $50 million (Meagher et al., 2020). Another significant factor to consider when listing continuation is whether the firm satisfies the minimum pricing criteria within the market.
References
Meagher, S. A. S., Dzierniejko, F. L.-R. J., McDonald, J. A., Zeidel, M. J., & Graebner, R. (2020). Key Considerations for Non-US Companies Listing in the US. Lexology. Web.