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Listing Requirements
of the NASDAQ Stock Market
* last updated April 10, 2011 |
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NASDAQ Stock Market was officially recognized as a stock
exchange by the U.S. Securities and Exchange Commission as of June 1,
2006. Over the last
twenty years NASDAQ has evolved into the preferred trading market for technology
and bio-technology companies. NASDAQ is split into three tiers; the
Global Select Market, Global Market and Capital Market. All tiers
of NASDAQ are much more
volatile than the trading markets of traditional stock exchanges.
This volatility results in more shares being traded per day on NASDAQ than
any other US exchange.
The attached charts provide a summary of
the listing requirements of NASDAQGSM, NASDAQGM and
NASDAQCM:
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Nasdaq Global Select Market Listing Requirements |
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Requirements |
Standard 1 |
Standard 2 |
Standard 3 |
Standard 4 |
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Pre-Tax Income |
Aggregate in prior 3 fiscal years ≥$11,000,000
and
Each of the 2 most recent fiscal years ≥$2,200,000 and
Each of the prior 3 fiscal years ≥$0
|
N/A |
N/A |
NA |
|
Cash Flows |
N/A |
Aggregate in prior 3 fiscal years ≥$27,500,000 and each of
the prior 3 fiscal years ≥ $0 |
N/A |
N/A |
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Revenue |
N/A |
Previous fiscal year ≥ $110,000,000 |
Previous fiscal year ≥ $90,000,000 |
N/A |
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Two Year Avg Pre-Tax Income |
$1,000,000
(2 out of 3 year) |
N/A |
N/A |
$75,000,000 (2 out of 3 years) |
|
Net Tangible Assets |
N/A |
N/A |
N/A |
$80,000,000 (in last completed fiscal year) |
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Market Value of Listed Securities |
N/A |
Average ≥$550,000,000 over prior 12 months
|
Average ≥$850,000,000 over prior 12 months |
$160,000,000 |
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Market Value of Publicly Held Securities(1) |
$45,000,000 |
$45,000,000 |
$45,000,000 |
$45,000,000 |
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# of Shares Publicly Held(2) |
1,250,000 |
1,250,000 |
1,250,000 |
1,250,000 |
|
# Public Board Lot Holders |
450 |
450 |
450 |
450 |
|
Trading Price of Listed Securities2 |
$4.00 |
$4.00 |
$4.00 |
$4.00 |
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Shareholders Equity |
N/A |
N/A |
N/A |
$55,000,000 |
|
Market Makers |
3 or 4 |
3 or 4 |
3 or 4 |
3 or 4 |
|
Operating History |
N/A |
N/A |
N/A |
N/A |
| Notes: |
- Seasoned companies currently trading on another market are required to
have a market value of publicly held shares of $110,000,000 or a market value
of publicly held shares of $100,000,000 and $110,000,000 in shareholders’
equity.
- Issuers listing concurrently with an initial public offering or as a
spin-off may alternatively have 2,200 total shareholders. Seasoned companies
currently trading on another market or affiliated companies of listed on
Nasdaq Global Select Markets may alternatively have 2,200 total shareholders
or 550 total shareholders and 1,100,000 average monthly trading volumes over
the last 12 months.
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Nasdaq Global Market –
NASDAQGM |
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Nasdaq Global Market Listing Requirements |
|
Requirements |
Standard 1 |
Standard 2 |
Standard 3 |
Standard 4 |
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Pre-Tax Income Last Year
(In latest fiscal year or in 2 of last 3 fiscal
years) |
$1,000,000 |
N/A |
N/A |
NA |
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Total Assets and Total Revenue
(In latest fiscal year or in 2 of last 3 fiscal
years) |
N/A |
N/A |
N/A |
$75,000,000 and
$75,000,000 |
|
Mrkt Value Publicly Held Stock(1) |
$8,000,000 |
$18,000,000 |
$20,000,000 |
$20,000,000 |
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Market Value of Listed Securities(2) |
N/A |
N/A |
$75,000,000 |
N/A |
|
# of Shares Publicly Held |
1,100,000 |
1,100,000 |
1,100,000 |
1,100,000 |
|
# Public Board Lot Holders |
400 |
400 |
400 |
400 |
|
Trading Price of Listed Securities(3) |
$4.00 |
$4.00 |
$4.00 |
$4.00 |
|
Shareholders Equity |
$15,000,000 |
$30,000,000 |
N/A |
N/A |
|
Market Makers |
3 |
3 |
3 |
3 |
|
Operating History |
N/A |
2 years |
N/A |
N/A |
| Notes: |
- Publicly held shares is defined as total shares outstanding, less any
shares held directly or indirectly by officers, directors or any person who
is the beneficial owner of more than 10% of the total shares outstanding of
the company. Entities in which an officer, director, or 10% owner has voting
and/or dispositive power, such as a typical Employee Stock Option Plan, are
excluded from publicly held shares.
- The term, "listed securities", is defined as "securities listed on
NASDAQ or another national securities exchange."
- Seasoned companies (those companies already listed or quoted on another
marketplace) qualifying only under the Market Value Standard must meet the
market value of listed securities and the bid price requirements for 90
consecutive trading days prior to applying for listing.
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Nasdaq Capital Market –
NASDAQCM |
|
Nasdaq Capital Market Listing Requirements |
|
Requirements |
Standard 1 |
Standard 2 |
Standard 3 |
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Pre-Tax Income Last Year
(In latest fiscal year or in 2 of last 3 fiscal
years) |
N/A |
N/A |
$750,000 |
|
Net Tangible Assets |
N/A |
N/A |
N/A |
|
Mrkt Value Publicly Held Stock(1) |
$15,000,000 |
$15,000,000 |
$5,000,000 |
|
Market Value of Listed Securities(2) |
N/A |
$50,000,000 |
N/A |
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# of Shares Publicly Held |
1,000,000 |
1,000,000 |
1,000,000 |
|
# Public Board Lot Holders |
300 |
300 |
300 |
|
Trading Price of Listed Securities(3) |
$4.00 |
$4.00 |
$4.00 |
|
Shareholders Equity |
$5,000,000 |
$4,000,000 |
$4,000,000 |
|
Market Makers |
3 |
3 |
3 |
|
Operating History |
2 years |
N/A |
N/A |
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Notes: |
- Publicly held shares is defined as total shares outstanding, less any
shares held directly or indirectly by officers, directors or any person
who is the beneficial owner of more than 10% of the total shares
outstanding of the company. Entities in which an officer, director, or
10% owner has voting and/or dispositive power, such as a typical Employee
Stock Option Plan, are excluded from publicly held shares.
- The term, "listed securities", is defined as "securities listed on
NASDAQ or another national securities exchange."
- Seasoned companies (those companies already listed or quoted on
another marketplace) qualifying only under the Market Value Standard must
meet the market value of listed securities and the bid price requirements
for 90 consecutive trading days prior to applying for listing.
Go to the listing requirements of other exchanges:
Master Chart Summary,
AMEX ,
NYSE,
TSX,
TSX Venture,
CNSX,
OTCBB, and
US Pink Sheets |
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Alixe B. Cormick
Venture Law Corporation
618 - 688 West Hastings St.
Vancouver, B.C.
V6B 1P1
Phone: 604-659-9188
Fax: 604-659-9178
E-mail Us |
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