Backdoor listing - Definition

A company that has lost most of its shareholder value announces a new venture into a completely different industry. These companies that failed to get listed on an exchange earlier before the new venture acquire and merge with an existing listed company.

For example, company XYZ is seeking to access the New York stock exchange to list their businesses could consider achieving this by way of reverse takeover by a merger with a company already listed on New York stock exchange.

A business seeking to achieve a back door listing must firstly identify a suitable vehicle with which to do so. Whilst some prefer to use an already listed company, a suspended company can on occasions also be used.



Terms near "Backdoor listing"

Backup withholding
Backward integration
Backwardation
Bad debt
Bad debt reserve
Bailment
Balance of payments
Balance of Trade
Balance Sheet
BAM
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