Uplisting

Uplisting is the process of a company moving its stock from a smaller, less regulated market, such as the OTC markets or pink sheets, onto a major national exchange like the NYSE or Nasdaq. To uplist, a company has to meet that exchange's listing standards, which typically cover things like a minimum share price, minimum market capitalization or shareholders equity, a minimum number of public shareholders, and stronger corporate governance requirements.

Uplisting is generally seen as a positive milestone, since it expands the pool of investors who are able to buy the stock. Many mutual funds, index funds, and other institutional investors are restricted by their own mandates from holding stocks that trade only over the counter, so moving to a major exchange can open the door to new demand that was previously off limits. A listing on a major exchange also tends to improve visibility, analyst coverage, and overall liquidity, and can make a stock eligible for inclusion in certain indexes down the line.

Because meeting a major exchange's minimum share price requirement can be a challenge for a company whose stock has fallen to a very low price, some companies carry out a reverse stock split shortly before uplisting specifically to boost their nominal share price high enough to qualify, even though a reverse split by itself does not change the underlying value of the company.