Listing, official listing or stock exchange listing is the official admission of a security to exchange trading. In normal situation, the issuing firm (the firm whose securities are meant to be admitted) applies for listing but in specific cases the exchange/ venue can, per se, add a firm to its listed issuers. Once added, a firm becomes officially a listed firm. and its securities become officially listed securities.
Listing provides a host of advantages including the creation of an orderly marketplace and liquidity for the listed security and the ability to submit a security to fair or market-induced price determination on the basis of supply and demand. For the holders of such securities, listing can guarantee strict regulations for protection of security holders and a better reporting mechanism in relation to the amounts traded and quotations, etc.
Listed securities include bonds, stocks, preferred stocks, warrants, rights, options and other derivative contracts, etc.
