The minimum listing requirements for the Nasdaq Capital Market (the lowest tier) generally require a minimum of $4–5 million in stockholders' equity, 1 million publicly held shares, 300 shareholders, and at least three market makers. Companies must also meet a minimum bid price of $4 per share, though exceptions exist.
Nasdaq proposed changes to its initial and continued listing standards, including a US$15 million minimum market value of public float for new listings under the net income standard and an accelerated delisting process for securities with a listing deficiency and a market value of listed securities below US$5 million.
Nasdaq listing rules require companies to maintain a closing bid price above $1.00 per share (the “bid price rule”). A company violates the bid price rule when its closing bid price is less than $1.00 for 30 consecutive trading days.
A $15 million minimum market value of public float, applicable to new listings on Nasdaq under the net income standard. An accelerated process for suspending and delisting companies with a listings deficiency that also have a Market Value of Listed Securities below $5 million .
Lot value calculation
The minimal volume for this index is one micro lot (0.01).
One lot is 100,000 units of the base currency. Mini lot equals 0.1 standard lots and constitutes 10,000 units of the base currency. Micro lot equals 0.01 lots and constitutes 1,000 units of the base currency.
Additionally, Nasdaq requires a minimum market capitalization of $50 million for listing. Companies must also have at least two years of operating history to list on Nasdaq. Share Price and Corporate Governance: Companies must also meet certain share price and corporate governance requirements to list on Nasdaq.
A requirement to raise the minimum Market Value of Unrestricted Publicly Held Shares ("MVUPHS") to US$15 million for companies listing under the net income standard for both the Nasdaq Global Market and the Nasdaq Capital Market, up from US$8 million and US$5 million, respectively.
The Nasdaq 10-Minute Rule requires companies listed on Nasdaq to provide at least 10 minutes' advance notice to Nasdaq's MarketWatch department before publicly releasing material information, like earnings or major corporate changes, during market hours, to allow the exchange to assess potential trading halts. This rule ensures orderly markets by giving Nasdaq time to evaluate significant news and potentially pause trading in a stock, preventing unfair advantages and volatility from information leaks, and it must be done via their electronic system.
If a company trades for 30 consecutive business days below the $1.00 minimum closing bid price requirement, Nasdaq will send a deficiency notice to the company, advising that it has been afforded a "compliance period" of 180 calendar days to regain compliance with the applicable requirements.
Standard Clauses that can be used as sample contractual language when structuring a securities transaction that may trigger Nasdaq's 20% rule. Nasdaq requires stockholder approval before a listed company can issue twenty percent or more of its outstanding common stock or voting power.
A fractional share represents ownership of less than a full share of stock. Rather than having to purchase a whole share of stock, fractional share investing allows you to buy a fraction of a share, such as 0.5 or 0.1 shares, depending on how much money you want to invest.
There's no definitive "top 5" list for penny stocks as they're highly speculative, but recent watchlists include NAMM, BOXL, RR (Richtech Robotics), RZLV, and SEGG, often driven by high trading volume in diverse sectors like AI, robotics, and tech, but remember these carry high risk and volatility, typically under $5 per share. Always perform your own thorough research before investing in penny stocks.
Through these changes, Nasdaq has accelerated delisting for companies that fall out of compliance with its listing standards and made it more difficult for companies to initially list on Nasdaq. Since August 2024, Nasdaq has proposed a series of rules strengthening the enforceability of the bid price rule.
Notwithstanding the foregoing, a failure to meet the continued listing requirement for minimum bid price shall be determined to exist if a Company's security has a closing bid price of $0.10 or less for ten consecutive business days.
A list of securities with transactions that failed to settle for five straight settlement days is known as a threshold list. Following SEC standards, several exchanges provide threshold lists. Failures to settle may be a sign of improper naked short selling. Administrative mistakes also bring on settlement failures.
Compliance can be achieved during any compliance period by meeting the Bid Price Requirement for a minimum of ten consecutive business days during the applicable compliance period, unless Staff exercises its discretion to extend this ten-day period as discussed in Nasdaq Rule 5810(c)(3)(H).