Principal officials gathered Wednesday to celebrate the reopening of the 1939 building at 711 High St.
Principal Financial Group will leave the New York Stock Exchange on Dec. 15 in favor of a listing on the Nasdaq Global Select Market, the Des Moines-based company announced this week.
Nasdaq says its Global Select Market has the “highest initial listing standards of any of the world’s stock markets.” Listed companies must continually meet financial and liquidity requirements and satisfy corporate governance and disclosure requirements.
“Our move to Nasdaq is consistent with our evolution as a company, with technology and innovation enhancing our ability to develop new solutions, deliver a better customer experience and put people on the path to financial security,” Dan Houston, chairman, president and CEO of Principal, said in a news release. “Our partnership with Nasdaq also provides a number of benefits including best in class investor relations services, greater brand visibility and marketing power.”
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Companies increasingly switch between marketplaces nowadays, said Catherine Zaharis, a finance faculty member at the University of Iowa’s Henry B. Tippie College of Business.
“It’s more common than it has been in the past. I think all of the exchanges court people to move from one to the other,” she said. “Over time, people have flipped back and forth.”
A former mutual fund manager, Zaharis said the New York Stock Exchange was long considered the pinnacle of company’s success. But those perceptions are changing as the Nasdaq’s reputation has improved.
Many tech companies like Apple and Oracle started on the Nasdaq and stayed with that marketplace rather than moving to the New York Stock Exchange as they grew, she said.
“If you think of how you want to identify yourself as a company, correctly or incorrectly, there is this perception that the companies in the Nasdaq are more of a dynamic group of companies because you do have those tech companies there,” Zaharis said.
Aside from modest cost savings, Zaharis said the average Principal investor should be “indifferent” to the move.
Principal will maintain the PFG ticker symbol it’s held since going public in October 2001.
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