[Last updated: 1 January 2024, unless otherwise noted]
The Nasdaq Stock Market (Nasdaq) has three listing tiers:
- 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.
- Nasdaq Global Market. Listing requirements are somewhat less stringent than the Global Select Market. This market lists companies with an overall global leadership and international reach with their products or services.
- Nasdaq Capital Market. This market is designed for smaller capitalization companies and is focused on its core purpose for those companies listed ― capital raising.
In addition, Nasdaq has also formed the PORTAL Alliance, a trading and transfer system for privately placed securities. The PORTAL Alliance provides a market for trading in 144A securities.
Historically, Nasdaq developed as the first electronic exchange and was designed for over-the-counter trading of shares that did not meet the listing requirements of other exchanges. It previously attracted smaller start-up companies which would eventually leave to list on higher-profile exchanges, such as the New York Stock Exchange (NYSE). Financial, industrial, healthcare and consumer companies now account for more than half of Nasdaq listings. In recent years, Nasdaq has become a major competitor of exchanges such as the NYSE and reportedly is today the largest electronic stock market in the US.
Any proposed listing would be subject to regulation by the appropriate division of Nasdaq and the US Securities and Exchange Commission (SEC). A proposed listing may also be subject to review by the US Financial Industry Regulatory Authority, Inc. (FINRA).
