What are the primary reasons companies switch stock exchanges?

The primary reasons companies switch stock exchanges are to increase visibility, achieve higher trading volume, and reduce fees.

How does switching stock exchanges affect a company's shareholders?

Switching stock exchanges on its own doesn't affect a company's shareholders. They'll each have the same number of shares after the switch. The change could positively or negatively impact the company's value, depending on the reasons behind it.

What is cross-listing, and why would a company choose this option?

Cross-listing occurs when a company listed on an exchange in its home country also gets listed on an exchange in a different country. This provides access to more liquidity, since the company's stock is available in multiple countries. Cross-listing can also help a company build its brand internationally.

Can a company be involuntarily delisted from an exchange?

Yes, a company can be involuntarily delisted from an exchange. Stock exchanges have listing standards that include financial requirements and reporting requirements. If a company fails to meet those standards, it can be delisted by its exchange.

How does switching exchanges impact a company's stock liquidity?

A company may see an increase in liquidity when it switches stock exchanges, particularly if it moves to a large exchange. The visibility and prestige of being on a major exchange can attract more investors to a company's stock.

Why Do Companies Change Exchanges?

Why Companies Change Exchanges

By Lyle Daly – Updated Apr 23, 2025 at 10:05 PM EST

Key Points

Switching stock exchanges can reduce a company's listing fees and increase liquidity.
Greater visibility on larger exchanges helps attract more institutional investors.
Listing on major stock exchanges often boosts a company's credibility and market presence.

A company's choice of stock exchange has a significant financial impact, and there are many reasons why companies change exchanges. The exchange isn't just a matter of the letter in front of a company's stock ticker. It affects the company's visibility and credibility with investors and, ultimately, its access to capital.

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Photo of the Wall Street street sign with American flag in the background. — Image source: Getty Images.

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The Nasdaq has a longer list of options, including market capitalization averaging at least $550 million over the past 12 months or revenue of at least $110 million over the previous fiscal year.

There are also the distribution requirements. The requirements for initial public offerings (IPOs) and spin-off companies are listed in the table below. To qualify, a company must meet all the requirements for the exchange where it wants to be listed.

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Data source: NYSE and Nasdaq.
Requirement	NYSE	Nasdaq
Shareholders	400 round lot	450 round lot or 2,200 shareholders
Minimum number of publicly held shares	1.1 million	1.25 million
Market value of publicly held shares	$40 million	$45 million
Minimum share price	$4	$4

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Why companies change exchanges: FAQ

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About the Author

Lyle Daly is a contributing Motley Fool stock market analyst covering information technology and cryptocurrency. Lyle has been a contributor at the financial services company since 2018. His work has been featured on USA Today, Yahoo Finance, MSN, Fox Business, and Nasdaq. Before joining The Motley Fool, he wrote for financial brands including Intuit.

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@LyleDaly

Charles Schwab is an advertising partner of Motley Fool Money. Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Oracle. The Motley Fool recommends Charles Schwab and recommends the following options: short June 2025 $85 calls on Charles Schwab. The Motley Fool has a disclosure policy.

A voluntary delisting is when a company requests to be removed from a stock exchange. A company may do this because it no longer wants to pay the annual listing fees. Companies also must be delisted when they go private. For example, Twitter (now X) stock was delisted from the NYSE after Elon Musk completed his acquisition of the social media platform.

An involuntary delisting occurs when a stock exchange decides to remove a company's stock from its listing. Exchanges have ongoing requirements, known as listing standards, that companies must meet to remain listed on the exchange. If a company fails to meet those standards, the stock exchange will delist it. Here are some triggers that can lead to a delisting from the NYSE:

Fewer than 400 shareholders

Fewer than 1,200 shareholders and an average monthly trading volume of less than 100,000 shares for the most recent 12 months

Fewer than 600,000 publicly held shares

Average market cap of less than $50 million for a consecutive 30-day trading period and, at the same time, shareholders' equity under $50 million

Failure to make timely and accurate public disclosures

Failure to file quarterly or annual reports

Bankruptcy filing

The Nasdaq has similar listing standards. In addition, both exchanges delist stocks that fall below a minimum share price of $1.

Involuntary delistings often signal serious trouble at a company. Chinese company Luckin Coffee is a good example. In 2020, it was delisted from the Nasdaq after revealing that it had inflated its sales revenue. The company faced several class-action lawsuits, and it filed for bankruptcy in 2021, which allowed it to restructure its debt. It's still publicly traded, but now over-the-counter (OTC) on the pink sheets, not the Nasdaq.

Why Companies Change Exchanges

Key Points

Stock Market Basics for Beginners

How Are Stock Prices Determined?

Trading on the Over-the-Counter (OTC) Market

Why companies change exchanges: FAQ

About the Author

Read Next

Stocks Mentioned

Premium Investing Services

Stock Market Basics for Beginners

How Are Stock Prices Determined?

Trading on the Over-the-Counter (OTC) Market

Why companies change exchanges: FAQ

What are the primary reasons companies switch stock exchanges?

How does switching stock exchanges affect a company's shareholders?

What is cross-listing, and why would a company choose this option?

Can a company be involuntarily delisted from an exchange?

How does switching exchanges impact a company's stock liquidity?

Reasons companies switch stock exchanges

Stock exchange requirements

Key considerations for investors

FAQ

Examples of companies that have switched exchanges

PepsiCo

Oracle

Charles Schwab

When a company can get delisted

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