requirements for a company to be listed on the Nasdaq

The Nasdaq is an American stock exchange that handles electronic securities trading around the world. Companies listed on the Nasdaq must meet certain financial standards in order to remain on the exchange, or they may face being delisted. Currently, the Nasdaq lists a variety of different types of securities, including stocks, options, and other derivatives. Many of the most famous companies in the world are listed on the Nasdaq, which tend to be technology-related, like Apple, Amazon, Google, and Microsoft. The Nasdaq also includes companies that aren’t technology-related, such as Costco and PepsiCo.

In order to get listed on the Nasdaq, a company must have certain assets, capital, and other requirements. These include net tangible assets, net income in the most recent fiscal year or two of the last three years, public float of shares, market value of the company’s public float, and at least 400 shareholders. The company must also be a registered corporation and be in compliance with the Securities and Exchange Commission (SEC) regulations.

Once the company has met these criteria, it can file an application with the Nasdaq, which will review the company and provide feedback. The application process takes about four to six weeks, and the company will need to pay a fee to file with the Nasdaq. Often, a company’s securities counsel will handle the filing on its behalf.

What are the requirements for a company to be listed on the Nasdaq

Depending on which market a company is applying to be listed in, the initial fees can vary. The Nasdaq Capital Market has the lowest entry requirements, and the entry fees for the Nasdaq Global Select Market and the Nasdaq Global Market are higher. Companies must also pay annual fees in order to remain listed on the Nasdaq, which can range from $47,000 to $84,000.

Companies that aren’t satisfied with the NASDAQ listing requirements can apply for uplisting to a different level. To uplist from the OTC to NASDAQ, a company must have at least $1.1 million in public shares and a minimum of 2,200 shareholders, as well as meet corporate governance standards and an independent compensation committee. Uplisting can also require a company to submit an application to the SEC. The company must then wait for the SEC to approve its application before it can start trading on the NASDAQ.

It is possible for a company to be listed on more than one exchange, though it’s rare for companies to do so. A company can have a dual listing on the NYSE and the Nasdaq, but must comply with the requirements of each. Typically, this is done when a company wants to take advantage of the different markets that each exchange offers.