Are listing requirements for NASDAQs SmallCap Market less stringent?
Yes. Companies can list on NASDAQs SmallCap Market with stockholders equity of just $5 million or with a market value of listed securities of $50 million or operating income of $750,000 in the latest fiscal year or in two of the last three fiscal years. Initial listing also requires at least one million publicly held shares with a market value of $5 million and a minimum bid price of $4. Three hundred round lot shareholders, three market makers and a one-year operating history or $50 million in market value of listed securities are also needed, as well as adherence to corporate governance rules. As with the NASDAQs National Market listing, SmallCap companies must meet continued standards in order to maintain their listing.
