DATE: August 19, 2013
What factors determine if an option can be listed on a specific stock?
There are several requirements that must be met before listing options on a specific stock. A company must have certified financial statements to ensure they are in compliance with current accounting practices. In addition, a stock must have a certain level of trading volume and a minimum stock price. Other requirements include a minimum number of shareholders and minimum number of trading days a stock must trade on a stock exchange. And, alhough a company's stock may meet these requirements, there still may not be options listed on that stock. To learn more about the factors that determine if an option can be listed on a specific stock, view this segment of "Ask the Institute."