Listed company is a term used to describe a company whose shares are traded on a stock exchange. The spelling of this term is as follows: /ˈlɪstɪd ˈkʌmpəni/. The first syllable, "list," is pronounced with a short "i" sound like in "it" and the "t" is pronounced with a voiced "d" sound. The second syllable, "ed," is pronounced as "id." The stress falls on the first syllable. The phonetic transcription of words helps to provide a standardized way of representing the sounds of a language.
A listed company, also known as a publicly listed company or publicly traded company, is a business entity whose shares of stock are available for trading on a stock exchange or over-the-counter market. It is an organization that has undergone an initial public offering (IPO) or similar process to become listed and traded on a stock exchange.
When a company becomes listed, it transforms from being privately owned and financed to a publicly owned entity. This means that its ownership is dispersed among numerous shareholders, including individual and institutional investors, who are able to buy and sell shares of the company's stock through the stock exchange. The process of going public allows the company to raise capital by selling shares to the public, facilitating expansion, acquisitions, and other strategic initiatives.
Being listed provides various benefits for the company, such as increased visibility, access to a wider pool of investors, and enhanced credibility. It also imposes certain regulatory requirements, including regular financial reporting and disclosure obligations, to ensure transparency and protect the interests of investors.
Listed companies are subject to market forces and the fluctuations of stock prices, as their shares are bought and sold in real-time on the stock exchange. Shareholders are entitled to receive dividends and participate in the company's management by exercising voting rights at annual general meetings, based on the number of shares they hold.
Overall, being listed as a publicly traded company signifies the company's willingness to be held accountable to shareholders and the market, and it opens up opportunities for growth and access to capital.
The term "listed company" originated from the word "list". In this context, "list" refers to the official list of companies that have satisfied specific criteria and are permitted to be traded on a particular stock exchange.
The etymology of "list" can be traced back to Old English, where it was spelled as "līste" and meant to "please, desire, or yearn for". Over time, the meaning evolved to include "to please, to like, to delight", and eventually to "to sign up for service or duty".
In the context of companies, being "listed" means that the company has met the requirements necessary to be included on the official register of securities eligible for trading on a stock exchange.