Companies on Nasdaq

The Nasdaq only allows the best of the best companies to be traded on their exchange. There are 3 groups of listing requirements and a company must satisfy at least one of the three.

Rule 4420 - All Companies Listing Requirement

• 1.1 million publicly-traded shares upon listing (minimum) with less than 10% being held by directors, officers or owners.
• $5 minimum bid price upon listing
• 400 shareholders requirement having over 100 shares per shareholder

Requirement Rule 4420 (a)

• minimum shareholder equity of $15 million
• operating income must total $1 million from either the last fiscal year, or two of the last three years
• 400 shareholders requirement having over 100 shares per shareholder
• 3 market makers
• $8 million market value of the publicly-held shares

Requirement Rule 4420 (b)

• minimum shareholder equity of $30 million
• market value of the shares traded must be at least $18 million upon listing
• minimum operating history of two years
• 3 market makers
• if a company did not earn enough to meet the operating income minimum, they need to have greater shareholder equity and a larger market value.

Requirement Rule 4420 (c)

• $75 million in total assets, total revenue, or listed securities
• market value of the shares traded must be at least $20 million upon listing
• minimum operating history of two years
• 4 market makers
• if a company did not earn enough to meet the operating income minimum, they need to have greater shareholder equity and a larger market value.