Before a company can begin trading on an exchange, it must meet certain initial requirements. The exchanges set their own standards for initial listing, which
include minimum thresholds for the number of publicly traded shares, total market value, stock price, and number of shareholders.
a. Review the NASDAQ listing requirements and describe the three distinct tiers in the
NASDAQ market.1 Which tier has the most stringent listing requirements?
b. What is the minimum number of shares for the NASDAQ Global Select Market?
c. Companies must meet all of the financial requirements of one of four standards, as
well as liquidity requirements, for the NASDAQ Global Market. What are the four
standards? What is the minimum bid price and number of shareholders under the
standards and liquidity requirements?
d. Review the corporate governance requirements. What securities issuances require
shareholder approval?
