Series 79 practice questionmediumIPO Process
A company is preparing for an IPO and must submit listing applications to U.S. exchanges. Which of the following is typically required for initial listing on the NYSE?
- AA minimum public float of $10 million and at least 100 shareholders
- BNo history of prior private placements
- CAt least 400 round lot shareholders and $40 million in publicly held shares✓ Correct answer
- DAn average stock price of $1 over the prior year
Explanation
Why C — At least 400 round lot shareholders and $40 million in publicly held shares
The NYSE requires at least 400 round lot holders and $40 million in public float. The trap is confusing NYSE requirements with those of NASDAQ or underestimating the thresholds.
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