THE DISTRIBUTION OF SECURITIES 93
syndicates in their mutual transactions, the subscription offer-
ing made to the public, and the transactions in the new security
on the Curb, have not in any way involved the Stock Exchange.
This fact is reiterated because of the vague idea which many
people seem to have, that the Stock Exchange supervises all
new security issues from their very inception. Nothing as a
matter of fact could be further from the truth. The Stock
Exchange begins to function in the distribution of any given
security only when the latter is listed for trading on its floor.
Most large corporations, whose security issues aggregate
large sums of money, naturally desire to list upon the Ex-
change in order to gain the advantage of its broad and reliable
marketing facilities. But first a formal application must be
made for listing by, or on behalf of, the corporation itself.
The Stock Exchange never urges or solicits companies to list
their securities upon it, lest it should appear to endorse them or
give assurance in advance that they will be listed. Such appli-
cations for listing are referred to the Committee on Stock
List,” whose function it is to receive and consider them, and
either to take action upon them itself or to make recommenda:
tions concerning such action to the Governing Committee.
Requirements for Listing on the Stock Exchange.—
When application to list is first made, the applicant is given
several separate documents, depending somewhat upon the par
ticular kind of security for which the listing is being sought.®
The most significant of these documents are the list of require-
ments, the questionnaire to be signed by an officer of the ap-
plicant company, and the distribution statement. Since the
listing requirements are too extensive to permit of detailed
comment here, they are reprinted complete as an appendix to
this chapter.®
These requirements have resulted from many years’ experi-
ence by the Stock Exchange governors, are varied according
" See Chapter XVI, p. 451, and also the Constitution of the New York Stock
Exchange, Article X, Sec. 1, p. 25.
8 See Appendix IVd.
?» See Appendix IVe.
