$1.$

WEB EXERCISE

This chapter on capital markets focuses on long$-$term financing and the various stock markets. Each stock market has its own listing requirements, and this exercise will look at the New York Stock Exchange listing requirements and listing fees. Students interested in repeating this exercise for NASDAQ may easily find the same information at

www$.$nasdaq.com.

Go to the New York Stock Exchange's website at

www$.$nyse.com. At the top of the page click on "NYSE." Click on "Listings"; then select "Listings Materials" and under "Standards," choose "all markets." Now choose "NYSE Initial Listing Standards." Scroll down to "NYSE Quantitative Initial Listing Standards." What is the adjusted pre$-$tax earnings test?

Scroll down to the next section where companies are required to meet all of the following distribution standards.

a$.$ How many round lot holders $(100$ shares$)$ are necessary?

b$.$ How many public shares are necessary?

c$.$ What are the market value criteria?