A publicly traded company issues shares that are available to the public, and may also trade debt securities. Dual listing and cross-listing are different, and compliance with regulations is necessary to maintain a listing.
Also known as a public company, a public company is any firm that issues publicly traded and publicly traded shares. In many countries, governments require companies to register before they can issue and trade stock shares. This allows anyone to access a list, such as the UK office directory, of currently listed companies as a means of identifying viable investments.
In some countries, a listed company may also be allowed to trade debt securities instead of shares on a certain type of exchange or market. Some examples of debt securities could be municipal bond issues, various types of collateralized securities, or even government bonds. As with an equity issue, the company would need to meet specific criteria before it can trade debt securities on the market.
A business can be a single publicly traded company, meaning that there are no subsidiaries or affiliated companies that are part of the same stock or corporation listing. In some cases, two companies may choose to use a so-called equalization agreement to be listed as a single public company. The two companies remain separate entities, but are recognized as a dual listed company or DLC for the purpose of trading shares on a stock exchange.
There is sometimes confusion between the publicly traded company and what is known as a publicly traded company. While dual listing refers to the conclusion of an agreement between two companies regarding the trading of shares on a specific exchange, a cross-listing has to do with one of those companies involved in trading double listings on more than one exchange. This distinction is important, especially for investors, as it can have some impact on whether or not the shares of the company or companies involved are traded.
Once established as a publicly traded company, the business may trade stocks as long as the issuance of those stocks complies with regulations established by the government agency or commission that oversees the issuance of stocks within the country in which the stock exchange is located . If the company or companies that make up the listing fail to comply with these regulations, there is a possibility that trading in the stock will be temporarily halted, pending an investigation and resolution of the matter. It is also possible for a publicly traded company to lose its listing, if the infractions are serious enough to merit this action, or if the business circumstances change to such an extent that it can no longer support the issuance of shares.
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