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Admission Board

Admission Board

What Is an Admission Board?

An admissions board involves delegates of a specific stock exchange who decide if a company will be permitted to list its shares on that exchange. An exchange's admission board lays out the exchange's listing requirements, guarantees that listed stocks follow those requirements, and comes to conclusions about when a stock ought to be delisted.

Understanding Admission Boards

An admission board's requirements for listed companies might include: the submission of a few previous years' worth of financial statements, the issuance of a prospectus, and the meeting or surpassing of least requirements for total market value, number of shares outstanding, and share price.

The board's rules and choices must follow securities regulations laid out by the government. An exchange's admission board generally comprises of significant level executives like CEOs, CFOs, directors, vice presidents, and partners from various major companies.

The New York Stock Exchange (NYSE) is the largest value market exchange in the world.

The First Admission Board in America

In the midst of the show of the 1792 market crash, what might turn into the first "admission board" for a stock exchange met under a buttonwood tree at 68 Wall Street (as legend has it) and pledged to deal fundamentally among themselves and to respect least commission rates.

On March 8, 1817, a group that included four of the original endorsers of the Buttonwood Agreement made an organization called the "New York Stock and Exchange Board," casually known as the "Board of Brokers." The Board of Brokers designed their constitution on that of the Philadelphia Exchange with seventeen rules that represented trading, accommodated admission and discipline of individuals, and looked to fix their control over the industry.

At this original exchange, the president sat before the individuals and "called the stocks." Members were required to go to all auction meetings, accommodated one-day delivery of securities, and precluded "fictitious trades," like matched orders or wash sales, usually used to impersonate genuine trading activity and invigorate outside investment. Punishments forced for infringement of these rules went from fines to suspension and ejection.

All along, admission standards stated that individuals needed to have drilled in the city for essentially a year. In 1820, commencement fees were forced to give evidence that a trader could follow through with losses. All new individuals were chosen by the full participation, with one repudiate adequate to keep a sketchy candidate out. The Board of Brokers likewise looked for some control over the industry in general, screening listed securities and distinguishing deceitful traders in a "dark book."


  • The board's rules must agree with not entirely settled by government regulatory agencies, for example, the Securities and Exchange Commission (SEC).
  • The admission board is the gatekeeper for a stock exchange, in charge of concluding which companies can list on the exchange, and what the rules are for listing.
  • Ordinarily a board will request several years of financial statements, a prospectus, a base total market value, a certain number of shares outstanding, and a base share price.
  • High level executives from major companies — including CEOs, CFOs, partners, and others — ordinarily contain an exchange's admission board.