News 
Market Data 
Discover
Replies to post #66248 on NaturalShrimp Inc (SHMP)
08/17/19 5:50 PM
Listing Requirements for the Nasdaq Capital Market
The Nasdaq Capital Market makes it easier for early stage companies to get listed, especially when compared to other senior exchanges with more onerous requirements. To list initially on the Nasdaq Capital Market, companies must meet all of the criteria under at least one of three listing standards—the equity standard, the market value of listed securities standard or the total assets/total revenue standard.
All the standards share some requirements such as one million publicly held shares, 300 shareholders and 3 market makers. However, they differ in important ways. The equity standard requires stockholder equity of $5 million, where the other two require only $4 million, and it also requires an operating history of two years, while the other two do not require an operating history. The market value of listed securities standard requires, not surprisingly, a market value of listed securities of $50 million and a market value of publicly held shares of $15 million. The net income standard is the only one requiring a net income, $750,000 in the latest fiscal year or in two of the last three years, but has the lowest requirement for market value of publicly held shares at $5 million.
Although companies can pick the standard that best matches, the overall standard and the required governance is more stringent than some early phase capital markets. Because of the costs involved with meeting these standards, companies listing on the Nasdaq Capital Market often handily exceed the minimum requirements before they decide to list. Other early phase capital markets like AIM have positioned themselves as lighter regulation destinations to provide bridge listings for companies as they grow large enough for the Nasdaq.
08/17/19 7:26 PM
