What is 'Back Door Listing'
A strategy of going public used by a company that fails to meet the criteria for listing on a stock exchange. To get onto the exchange, the company desiring to go public acquires an already listed company.
Explaining 'Back Door Listing'
Believe it or not, purchasing a public company can be a cost-effective way for some firms to go public.
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' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-XTLL200202012.htm'>PDF]… the issue of why private firms choose to go public through the backdoor rather than the front door, a sample … starting in 1999, backdoor listing activity increased on the asX … during the last year (2007), the number of transactions dropped back to seven, which is similar to pre- 1999 …