Listing

The process of becoming a public company by setting aside shares for the public through an exchange.

Listing is the process of a private business offering shares to the public via an exchange so that it can become a public company. This is a process native to corporate finance and characterized by the business’ compliance with Securities and Exchange Commissions (SECs) rules regarding public trading. Thus, after the commission has scrutinized the business’ many aspects, especially its management and ledgers, it approves its status as a public company, if it passes the scrutiny. Only then is the business said to be listed on an exchange.

Listing has a number of advantages. These include straightforward fundraising via shares sold to the public and the borrowing leverage. However, listed companies also face more scrutiny than unlisted companies and face a greater risk of being undervalued because of low liquidity.

In crypto, listing means that a token has been added to an exchange's basket of tradable assets. This involves creating a pool for the token and its pair where users can freely trade it.