2. Obtain funds to increase the liquidity of shareholders' assets.
3. After listing, it can improve the management level of the company.
4. It has free consultation and advertising effect. After listing, the company becomes a public enterprise, which plays a certain role in enhancing the company's brand and expanding the company's popularity.
5. Reduce human capital and raise wages. Listed companies can use stocks or options to attract and retain talents and improve their loyalty.
A listed company refers to a joint stock limited company whose shares are listed and traded on the stock exchange with the approval of the securities administration department authorized by the State Council or the State Council. The so-called unlisted company refers to a joint stock limited company whose shares are not listed and traded on the stock exchange.
A listed company is a joint stock limited company, which must meet certain conditions besides being approved to be listed and traded on the stock exchange. After the revision of the Company Law and the Securities Law, more enterprises will become listed companies and companies whose corporate bonds are listed and traded.
Company listing procedure
According to the relevant provisions of the Securities Law and the Company Law, the procedures for listing a joint stock limited company are as follows:
1. Apply to the securities regulatory body for listing.
A joint stock limited company applying for stock listing must be approved by the the State Council Securities Regulatory Authority. The securities regulatory department may authorize the stock exchange to approve the company's stock listing application in accordance with legal conditions and procedures.
2. Accept the examination and approval of the securities regulatory authorities.
The securities regulatory body shall examine and verify the materials submitted by a joint stock limited company for listing, and approve them if they meet the requirements; Do not meet the conditions, to be rejected; If the required documents are lacking, they may be required to complete them within a time limit; If payment is not expected, the application will be rejected.
3. Apply to the listing committee of the stock exchange for listing.
After the stock listing application is approved by the securities regulatory body, the approval documents and the following documents shall be submitted to the stock exchange:
1. listing report;
2. The decision of the shareholders' meeting applying for listing;
3. Articles of association;
4. Business license of the company;
5. The financial and accounting reports of the company in the last three years or since its establishment verified by a statutory verification institution;
6. Legal opinions and letters of recommendation of the securities company;
7. The latest prospectus;
8. Other documents required by the stock exchange.
A stock exchange shall arrange the listing and trading of stocks within six months from the date of receiving the above-mentioned documents submitted by the stock issuer. The Interim Regulations on the Administration of Stock Issuance and Trading also stipulates that a joint stock limited company approved for listing shall sign a listing contract with the stock exchange before listing, determine the specific listing date, and pay relevant fees to the stock exchange. There is no provision in the securities law.