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What do you mean by a listed company?

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Question

What do you mean by a listed company?

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Solution

A Listed Company is a public limited company whose shares are officially listed and traded on a recognised stock exchange, such as the National Stock Exchange (NSE) or Bombay Stock Exchange (BSE). To get listed, the company must meet strict regulatory guidelines and transparency requirements set by SEBI. This public listing provides liquidity, allowing investors to easily buy and sell shares at market prices. It also serves as an indicator of the company’s goodwill, financial health, and transparency, helping potential investors make informed decisions and assess the viability of their investments.

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Chapter 1: Accounting for Share Capital - Question for Practice [Page 67]

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NCERT Accountancy Company Accounts and Analysis of Financial Statements [English] Class 12
Chapter 1 Accounting for Share Capital
Question for Practice | Q 5. | Page 67
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