The three (3) segments of the Frankfurt Stock Exchange Explained
The Frankfurt Stock Exchange is divided into four tiers called segments, as follows:
1. Entry Standard
2. General Standard
3. Prime Standard
The "Entry Standard" is the segment with the least stringent reporting requirements and the Prime Standard is the segment with the most stringent reporting requirements. Moving up through the segments is relatively seamless (compared to a graduation from the OTCBB to the NASDAQ for example) since they are all part of the Frankfurt Stock Exchange.
There are two types of capital stock markets in the European Union:
1. EU-regulated markets and;
2. Markets that are self-regulated by the Frankfurt Stock Exchange.
The different segments of the Frankfurt Stock Exchange comprise both the Regulated Market and the Regulated Unofficial Market. The Regulated Unofficial Market is also referred to as the Exchange Regulated Market (or the Open Market) because it is self-regulated by the Frankfurt Stock Exchange itself, not by the EU. The Entry Standard belongs to the Regulated Unofficial Market whereas the General and Prime Standard belong to the Regulated Market, as illustrated below.
Regulated Unofficial Markets (exchange regulated and governed by private law):
1. Entry Standard Segment
EU Regulated Markets (based on the European Union transparency standards):
2. General Standard Segment
3. Prime Standard Segment
Many companies enter the market on the Entry Standard with a longer term goal of graduating to the General or Prime Standard segments, once they qualify.
To find out the requirements of the four segments, visit the main website of Go Public Pros GmbH:
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