All Stock Exchanges Are Not
Created Equal

Although regulations for all stock exchanges are established by the federal government's Securities and Exchange Commission (SEC), not all exchanges are created equal. Just as companies have different needs, various exchanges have different purposes and different modes of operation. Most exchanges charge for both listing and maintenance. They also have financial criteria that a company must meet. Exchanges can differ also in the minimum price per share for stocks that they will list, and they may vary in their regulations for trade execution, reporting, and settlement.

Learning about a stock exchange can tell you a lot about the companies listed on it. First of all, not all companies are listed on all exchanges. Some companies choose to be listed only on a regional exchange, while others select all of the major exchanges. A company's primary considerations may include its capital-raising needs or the image it wants to communicate to existing and prospective stockholders. Cost may be a factor, as well. Listing rates can vary widely from one exchange to another, and a company may choose a particular exchange to reduce costs.