...Uplisting means moving from a lower listing such as OTC Markets to one of these two exchanges. Uplisting isn't easy and requires a public company to meet the respective exchanges' listing requirements and standards, where the pubco must first go through the application process. Once they meet or exceed the listing criteria, the pubco awaits notification of acceptance. I have simplified the process, but as a shareholder it is positive for you in the following ways:
- Although there are no guarantees, uplisting usually provides greater liquidity in the issuers stock.
- Liquidity is increased by widening the purchasing audience especially for large institutions previously unable to buy stocks unless listed on the NYSE or NASDAQ.
- The market perception of uplisting is very bullish and encourages investor confidence and can be a significant boost to a stock's price from increased buying pressure.
Two other major benefits to uplisting can be increased research coverage, which could bring buy recommendations and larger capital market makers adding the stock to their pubco trading list. A huge benefit to uplisting is the rise in equity quality and credit rating resulting in a lower cost of borrowing.
For a microcap stock uplisting signifies graduation to smallcap or even midcap status as soon as market capitalization exceeds $300M. The day announcing the successful uplisting of a stock is certainly a bell ringing event and the second most important day in the stock since becoming a public company!
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