Involvement with the Frankfurt Stock Exchange requires understanding how various companies are broken up into different categories. Based upon the needs of the organization, this stock market allows organizations to determine which of the standards best meets their organizational objectives. There are a total of four different possible options for a company to consider when applying for listing on the Frankfurt market. These different classifications include the First Quotation Board, the Entry Standard, the General Standard and the Prime Standard. Before making a final decision of which group to decide upon, review the definitions and choose the best fit for your firm.

When examining the different classifications that are available in the Frankfurt Stock Exchange, keep in mind the amount of work that your firm will need to complete. One of the benefits of the First Quotation Board is that this requires the least amount of paperwork. In contrast, the Prime Standard group has more reporting regulations that need to be met. Depending upon the resources of your organization, it may not be wise to take on too much additional work in order to obtain a public listing. It is not uncommon for many firms to begin their listings under the First Quotation Board and work their way toward a higher classification.

Another consideration that an organization new to public listings needs to consider is the amount of regulations that will be undertaken. The Frankfurt Stock Exchange offers the ability to be traded under a regulated market or an unregulated market. The Regulated Unofficial Market, otherwise referred to as the open market, relies on the stock exchange to oversee the activities of the companies within the exchange. The Regulated Market is overseen by the EU. If you wish to enter the Open Market, then the First Quotation Board and Entry Standard are the viable categories from which to choose.

The European Union is involved in the Regulated Market to help organizations comply with transparency requirements established by governmental officials within these nations. The General Standard and Prime Standard categories fall under this jurisdiction. Because of the additional responsibilities required to meet these criteria, many companies work their way toward becoming listed within this market. The Frankfurt Stock Exchange ensures that all companies, regardless of which category they choose, abided by ethical standards to protect the investors and the organization. To learn more about which of these classifications best suits your organizational needs, contact the Frankfurt Stock Market.