NASDAQ : Company Listings (2024)

FAQs

Does the Nasdaq have the strictest listing requirements? ›

NASDAQ is segregated into three distinct tiers with each having their own listing requirements: The NASDAQ Global Select Market (which has the most rigorous listing requirements of all three tiers as well as any stock exchange around the globe)

General Nasdaq Listing Rules

For example, the Nasdaq minimum share price or bid price for inclusion is $4. It's possible to qualify with a bid price below that amount but that may entail meeting additional requirements. Companies must also have at least 1.25 million publicly traded shares outstanding.

Provide Nasdaq MarketWatch at least ten minutes prior notice of certain material news events when the public release of the information is made between 7:00 a.m. to 8:00 p.m. ET. If the public release of the material information is made outside of 7:00 a.m. to 8:00 p.m. ET, notify MarketWatch prior to 6:50 a.m. ET.

If rumors or unusual market activity indicate that information on impending developments has become known to the investing public, or if information from a source other than the issuer IM-5250-1 Disclosure of Material Information Rule 5250(b)(1) requires that, except in unusual circ*mstances, Nasdaq Companies disclose ...

A security must meet the applicable closing price requirement for at least five consecutive business days prior to approval.

Under certain circ*mstances, to ensure that the company can sustain long-term compliance, Nasdaq may require the closing bid price to equal or to exceed the $1.00 minimum bid price requirement for more than 10 consecutive business days before determining that a company complies.

While it generally takes four to six weeks to process a listing application, this time frame is variable and may be shortened considerably, if the application raises no issues and the company responds quickly to Staff comments.

A company seeking to list on Nasdaq must pay an entry fee, a portion of which constitutes a non-refundable application fee. Nasdaq Global Select and Global Markets. Entry fees are a flat fee of US$295,000, which includes an application fee of US$25,000. Nasdaq Capital Market.

The Nasdaq has four sets of listing requirements. Each company must meet at least one of the four requirement sets, as well as the main rules for all companies. In addition to these requirements, companies must meet all of the criteria under a particular set of standards.

Ordinarily, a company will be required to pay the initial listing fees to re-list. However, If a company was removed solely for failure to timely file its periodic reports and regains compliance with this requirement within one year of its delisting, then Nasdaq will waive initial listing fees.

What happens if a company fails to meet Nasdaq continued listing requirements? ›

Securities of a Company that does not meet the listing standards set forth in the Rule 5000 Series are subject to delisting from, or denial of initial listing on The Nasdaq Stock Market.

Under Listing Rule 5635(d), shareholder approval is required in connection with a transaction, other than a public offering, at a price below the Minimum Price involving the sale, issuance or potential issuance by the Company of common stock (or securities convertible into or exercisable for common stock), which alone ...

Rule 4350(i)(1)(D)(i): Requires shareholder approval in connection with a transaction other than a public offering involving the sale, issuance or potential issuance by the issuer of common stock (or securities convertible into or exercisable for common stock) at a price less than the greater of book or market value ...

The Rule of 40 – popularized by Brad Feld – states that an SaaS company's revenue growth rate plus profit margin should be equal to or exceed 40%. The Rule of 40 equation is the sum of the recurring revenue growth rate (%) and EBITDA margin (%).

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Nasdaq Global Select Market. This market has the most stringent initial listing standards. Listing on it is, according to Nasdaq, "a mark of achievement, leadership and stature for companies." Listed companies also receive certain additional support from Nasdaq.

These tiers are characterized by progressively stringent listing standards. The NASDAQ Global Select Market features the highest initial listing standards, while the NASDAQ Capital Market serves as the entry-level tier, often suitable for most small-cap issuers.

(40) "Round Lot" or "Normal Unit of Trading" means 100 shares of a security unless, with respect to a particular security, Nasdaq determines that a normal unit of trading shall constitute other than 100 shares.

The NASDAQ National Market imposes minimum bid price, quantitative and other criteria in determining whether a company will be permitted to list its stock on the NASDAQ. Initial Minimum Bid Price for Stock: The stock must have a minimum initial bid price of $5.00, and must later remain at or above $1.00.