| Stock Market Listing Standards Each exchange sets different criteria that must be satisfied for a stock to be listed there. The NYSE refers to their requirements as "Listing Standards." Nasdaq refers to the requirements as "Listing Qualifications." Listing requirements for these markets can be found at www.nyse.com and www.nasdaq.com.
- Find the listing requirements for firms with securities traded on each exchange.
- The NYSE also provides "continued listing standards." What are those requirements?
- Using the security search engine on either the NYSE or Nasdaq, search for stocks that do not meet the continued listing standards of the NYSE.
- For any stock identified in question 3, which variables would lead to the stock being delisted from the NYSE?
- What do you think is the likelihood that this stock will continue to be listed on the NYSE?
Short Sales Go to the Web site for Nasdaq at www.nasdaq.com. When you enter the site, a box appears that allows you to get quotes for up to 10 stocks. Request quotes for three firms you select. If you do not know the ticker symbol, it can be retrieved from the icon on the screen. Once you have entered the ticker for each company, click the item called "info quotes" that appears directly below the box for quotes.
- On which market or exchange do these stocks trade? Identify the high and low price based on the current day's trading. On the info quote screen is a pull-down box. Click the item labeled "short interest."
- Describe the trend, if any, for short sales over the last year.
- What is meant by the term "Days to Cover" that appears on the history for each company?
- Which of the companies has the largest relative number of shares that have been sold short?
- Does this ratio imply anything concerning the market consensus price movement in the stock?
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