Introduction to NASDAQ Global Select
The NASDAQ Global Select Market is a premier listing platform for companies seeking to raise capital and increase visibility. To be listed on this market, companies must meet specific requirements, including financial, corporate, and governance standards.
These requirements are designed to ensure that listed companies demonstrate a high level of integrity, transparency, and accountability, providing investors with confidence in the market and its participants.
Financial Requirements
To be eligible for listing on the NASDAQ Global Select Market, companies must meet certain financial requirements, including a minimum market capitalization of $1.1 billion and a minimum of 1.25 million publicly held shares.
Additionally, companies must demonstrate a history of profitability, with net income of at least $11 million in the most recent fiscal year, or $22 million in the two most recent fiscal years, combined.
Corporate Governance Requirements
NASDAQ Global Select Market listed companies must also meet specific corporate governance requirements, including the establishment of an audit committee, a compensation committee, and a nominating and corporate governance committee.
These committees must be composed of independent directors, who are responsible for overseeing the company's financial reporting, executive compensation, and nomination processes.
Liquidity and Shareholder Approval Requirements
To ensure liquidity and shareholder participation, NASDAQ Global Select Market listed companies must meet specific requirements, including a minimum average daily trading volume of 100,000 shares and a minimum of 400 round lot holders.
Additionally, companies must obtain shareholder approval for certain corporate actions, such as mergers and acquisitions, and executive compensation arrangements.
Maintenance and Compliance Requirements
Once listed on the NASDAQ Global Select Market, companies must continue to meet specific maintenance and compliance requirements, including filing periodic reports with the SEC and maintaining a minimum bid price of $1.00 per share.
Companies must also comply with NASDAQ's rules and regulations, including those related to corporate governance, financial reporting, and insider trading.
Frequently Asked Questions
What is the minimum market capitalization required for listing on the NASDAQ Global Select Market?
The minimum market capitalization required is $1.1 billion.
Do NASDAQ Global Select Market listed companies need to have a majority of independent directors on their board?
Yes, companies must have a majority of independent directors on their board, and all members of the audit, compensation, and nominating committees must be independent.
What is the minimum average daily trading volume required for listing on the NASDAQ Global Select Market?
The minimum average daily trading volume required is 100,000 shares.
Do NASDAQ Global Select Market listed companies need to obtain shareholder approval for executive compensation arrangements?
Yes, companies must obtain shareholder approval for certain executive compensation arrangements, such as equity-based compensation plans.
Can a company be listed on the NASDAQ Global Select Market if it does not meet the financial requirements?
No, companies must meet the financial requirements, including minimum market capitalization and profitability standards, to be eligible for listing on the NASDAQ Global Select Market.
How often must NASDAQ Global Select Market listed companies file periodic reports with the SEC?
Companies must file periodic reports with the SEC on a quarterly and annual basis, including Forms 10-Q and 10-K.