Final answer:
True. A firm must meet certain requirements to have its securities listed on an exchange, including measures of profitability, size, market value, and public ownership.
Step-by-step explanation:
True. In order for a firm to have its securities listed on an exchange, it must meet certain requirements. These requirements typically include measures of profitability, size, market value, and public ownership. These requirements ensure that the companies listed on the exchange are financially stable and have sufficient market presence.
For example, stock exchanges like the New York Stock Exchange (NYSE) and Nasdaq have specific listing requirements, such as minimum market value, minimum shareholder equity, and minimum number of publicly traded shares.
Meeting these requirements demonstrates the company's viability and provides investors with assurance of financial stability.