Listing on the NASDAQ requires companies to meet certain financial and regulatory standards. However, compared to some other exchanges, such as the NYSE, the NASDAQ's listing requirements are often seen as more flexible, which has made it an attractive option for emerging tech companies and startups looking to go public.
To be listed, a company needs to meet specific requirements related to its financial health, market capitalization, and corporate governance:
A minimum share price of $4 at the time of listing
At least three market makers (firms that facilitate the buying and selling of their stock)
Independent directors, an audit committee, and proper financial reporting mechanisms (to maintain investor trust and regulatory compliance)
Once a company has passed the above threshold, NASDAQ offers three primary tiers catering to companies of different sizes and levels of financial strength. These tiers allow businesses ranging from well-established corporations to emerging startups to access capital and grow.