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Definition

<p style="text-align: justify;">The acceptance of a company's <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">shares</span> for trading on the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">Johannesburg Stock Exchange</span> (JSE). New <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">listing</span>s usually occur when the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">economy</span> and the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">market</span> are buoyant. In <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">recession</span>ary times, <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">investors</span> tend to shy away from new listings and the number of listings on the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">stock exchange</span> declines. During <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">boom</span> times when investors are <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">bullish</span> the number of new listings increases as businesses seek to take advantage of this mechanism to raise <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">capital</span> and make their equity tradeable. That can eventually become a "<span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">listings boom</span>" where there are <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">companies</span> listing every week such as happened during the "<span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">dot-com</span>" boom of 1998. Having a listing is expensive so unless the company intends to raise capital or use their <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">scrip</span> to make <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">acquisitions</span> it has no real purpose. New listings are usually accompanied by an "<span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">initial public offer</span>" (IPO) where the company sells off a portion of its <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">share capital</span> to raise money.</p>