Introduction to the Nasdaq Capital Market
The Nasdaq Capital Market is an integral part of Nasdaq’s U.S. market structure for companies seeking a public listing with less stringent requirements than other Nasdaq market tiers. This section delves into the background, purpose, and significance of the Nasdaq Capital Market, specifically for small-cap companies and Special Purpose Acquisition Companies (SPACs).
**Background:** Established in 2005, the Nasdaq Capital Market was previously known as the Nasdaq SmallCap Market. Its primary focus is on early-stage companies that require capital to grow, making it an attractive option for smaller companies and SPACs. Companies listed here often exceed the minimum requirements before deciding to list due to the costs involved in meeting these standards.
**Purpose:** The Nasdaq Capital Market provides a less encumbered entrance for small-cap companies or shell corporations planning to raise capital through public markets via an acquisition of another business entity. Although the initial listing requirements are relaxed, the corporate governance needed to maintain a Nasdaq listing remains consistent across all tiers, ensuring adherence to codes of conduct, audit committees, independent directors, and more.
**Significance:** With a focus on less stringent listing requirements compared to other senior exchanges, the Nasdaq Capital Market is often a stepping stone for small companies and SPACs looking to grow in the public markets. To qualify for an initial listing on the Nasdaq Capital Market, a company must meet at least one of three listing standards: the equity standard, market value of listed securities standard, or total assets/total revenue standard. The Nasdaq exchange offers this tier as a more approachable option compared to other early-phase capital markets like the alternative investment market (AIM), which may offer lighter regulation as a bridge listing for companies preparing for a potential Nasdaq transition.
In the following sections, we’ll dive deeper into the unique features of the Nasdaq Capital Market, explore its differences from other tiers, and discuss the implications of these differences on companies seeking to list in this tier. Stay tuned for an informative exploration of the Nasdaq Capital Market, designed to provide value and insight that stands out in the investment world.
Features and Characteristics of the Nasdaq Capital Market
The Nasdaq Capital Market is a unique listing tier within the Nasdaq exchange that primarily caters to early-stage companies or Special Purpose Acquisition Companies (SPACs) in need of raising capital. In contrast to other market tiers on Nasdaq, such as Global Select and Global Market, which focus on larger companies with higher market capitalizations, the Nasdaq Capital Market offers less stringent listing requirements for small-cap firms or shell corporations planning to acquire other businesses.
What Sets the Nasdaq Capital Market Apart?
The Nasdaq Capital Market houses companies that typically have smaller market capitalizations, ranging from around $300 million to $2 billion. The name change from “Nasdaq SmallCap Market” to the current title in 2005 reflected a shift towards catering specifically to these emerging entities seeking to raise capital through a Nasdaq listing.
Criteria for Listing on the Nasdaq Capital Market
To list on the Nasdaq Capital Market, companies must fulfill one of three distinct listing standards: equity standard, market value of listed securities standard, or total assets/total revenue standard. While each standard has unique requirements, all three share some common elements. These include having a minimum of one million publicly held shares and 300 shareholders.
Differences in Listing Standards: Equity Standard vs Market Value of Listed Securities Standard
The equity standard requires companies to have a stockholders’ equity of at least $5 million, whereas the market value of listed securities standard calls for a market value of listed securities of $50 million and a market value of publicly held shares of $15 million. Companies can choose the standard that best fits their situation.
Net Income Requirement: A Key Difference Among Listing Standards
The equity standard also requires companies to generate net income of at least $750,000 in either the latest fiscal year or in two out of the last three years. This requirement is not present in the other two standards. Companies may decide to exceed the minimum requirements before listing on the Nasdaq Capital Market due to the associated costs and regulatory compliance.
Comparison with Other Listing Markets: AIM vs Nasdaq Capital Market
The Alternative Investment Market (AIM), another capital market, offers lighter regulation and lower costs as a potential bridge listing for companies as they grow towards meeting Nasdaq’s requirements. Although the Nasdaq Capital Market provides a more accessible entry into the public markets, its costs and regulations may be considered significant compared to AIM or other early-phase capital markets.
Nasdaq Listing Tiers: Progression from One Tier to Another
The Nasdaq exchange has three tiers for listed companies: Nasdaq Capital Market, Nasdaq Global Market, and Nasdaq Global Select Market. Companies may progress from one tier to another as they meet the varying requirements.
In conclusion, the Nasdaq Capital Market plays an essential role within the Nasdaq exchange ecosystem by providing a less stringent entry point for emerging small-cap companies or SPACs seeking capital growth through a public listing. The unique features and listing standards of the Nasdaq Capital Market set it apart from other tiers on the Nasdaq, making it an attractive option for these entities during their development stages.
Listing Requirements: Equity Standard
When it comes to listing on the Nasdaq Capital Market (Nasdaq-CM), a company needs to meet at least one of three initial listing standards—the equity standard, market value of listed securities standard, or total assets/total revenue standard. The equity standard is an attractive choice for companies seeking to list due to its relaxed requirements compared to other senior exchanges. But what exactly does it entail?
To qualify for the Nasdaq Capital Market under this standard, a company must have stockholders’ equity of $5 million and meet specific operating history requirements. This means that the company has achieved a net income of at least $750,000 in the most recent fiscal year or an average annual income of $750,000 over the previous two years. Furthermore, companies must have an operating history for a minimum of two years and 1 million publicly held shares, with no more than one-third of those shares being held by insiders or their affiliates. Additionally, at least 300 shareholders are required, with at least 400 holders if the company is seeking to raise capital through an underwritten public offering (UPO). The final requirement is a minimum bid price of $4 for each security listed on Nasdaq-CM, excluding certain securities.
It’s important to note that while these requirements may seem lenient compared to other exchanges, they still represent significant milestones for companies seeking capital growth and expansion. Furthermore, maintaining corporate governance in line with the Nasdaq listing rules is mandatory for all tiers, including the Nasdaq Capital Market. This means adhering to codes of conduct, independent directors, audit committees, and other regulations.
Understanding these equity standard requirements is essential for companies looking to join the ranks of those listed on the Nasdaq Capital Market, providing a solid foundation for growth and access to potential investors. By focusing on meeting the necessary criteria, early-stage companies and SPACs can make their mark in the financial markets, increasing visibility and credibility as they grow towards higher market tiers.
Listing Requirements: Market Value of Listed Securities Standard
The Nasdaq Capital Market, a US market tier catering to early-stage companies on the Nasdaq exchange, provides a less stringent alternative for small businesses and SPACs looking to raise capital. To qualify for this tier, companies must satisfy certain listing requirements, one of which is the market value of listed securities standard.
This standard, which sets the minimum market values required for a company’s publicly-traded shares, plays an essential role in determining eligibility for the Nasdaq Capital Market. Let us delve deeper into this requirement, understanding its specific conditions and what they imply for companies seeking to join the exchange.
Market Value of Listed Securities Standard: A Prerequisite for Nasdaq Capital Market
To list on the Nasdaq Capital Market under the market value of listed securities standard, a company must meet two key requirements:
1. Minimum Market Capitalization: Companies seeking to list on the Nasdaq Capital Market via this standard should have a minimum market capitalization of $50 million for their publicly traded securities. Market capitalization is calculated by multiplying the current share price by the total number of outstanding shares. This requirement ensures that companies listed on Nasdaq Capital Market possess a substantial enough presence in the public markets to qualify for listing.
2. Minimum Public Float: A minimum public float of $15 million is also necessary for companies wishing to list under this standard. Public float refers to the number of securities held by the public instead of insiders or institutions. This requirement ensures that the market can efficiently trade a sufficient quantity of shares, as well as provide liquidity to investors.
In conclusion, the market value of listed securities standard serves as an important criterion for companies seeking to list on the Nasdaq Capital Market. By adhering to this standard’s conditions, including meeting the minimum market capitalization and public float requirements, companies can establish a solid foundation for their future growth while gaining access to the advantages and visibility that comes with being listed on one of the world’s most renowned stock exchanges.
Upcoming sections in this article will discuss other listing standards for Nasdaq Capital Market, delve deeper into its features and characteristics, and compare it to other market tiers. Stay tuned as we explore the intricacies of understanding the Nasdaq Capital Market and its significance for small-cap companies and SPACs.
Listing Requirements: Total Assets/Total Revenue Standard
The Nasdaq Capital Market (Nasdaq-CM) is home to early-stage companies looking for capital growth opportunities. Companies meeting the requirements for listing on this market tier are not as stringently regulated when compared to those listed in other tiers like Global Market and Global Select Market, which focus on larger firms with substantial market capitalizations. In this section, we’ll dive into the Total Assets/Total Revenue Standard for companies wishing to list on the Nasdaq Capital Market.
The Total Assets/Total Revenue standard is one of three qualification standards for listing on Nasdaq-CM. Companies must meet at least one of these standards, as well as a minimum public float of one million shares and 300 shareholders to be listed. The other two standards are the equity standard and market value of listed securities standard, which we have covered in previous sections.
To qualify under this standard, a company’s net income must meet a particular requirement. It can either demonstrate an annual net income of $750,000 during its most recent fiscal year or have a total assets/total revenue ratio equal to or above 1:1 for each of the last two fiscal years. Additionally, there are certain exceptions to this income requirement, as outlined below.
For companies that opt for the Total Assets/Total Revenue standard, there are specific financial requirements they must meet. The company’s total assets and total revenue must both be reported in their most recent audited financial statements. The calculation of net income is taken from these same financial reports. Companies can choose to use either method – meeting the net income requirement or the total assets/total revenue ratio – but they cannot switch back once a decision has been made.
Another critical factor for companies seeking to list on Nasdaq-CM under this standard is their market value of publicly held shares. The requirement states that this figure should be at least $5 million, making it the lowest market value among the three listing standards. In contrast, the equity standard requires a minimum stockholders’ equity of $5 million, and the Market Value of Listed Securities standard demands a market capitalization of $50 million and a public float of $15 million for this requirement.
Understanding the differences between the various Nasdaq listing standards is crucial for companies looking to raise capital on this premier exchange. By thoroughly examining each standard, companies can make informed decisions regarding which one aligns best with their financial situation. In our next section, we’ll explore how the Nasdaq Capital Market differs from other listing markets such as the AIM (Alternative Investments Market) in terms of listing requirements and progression between tiers.
Comparing Nasdaq Capital Market to Other Listing Tiers
The Nasdaq Capital Market (Nasdaq-CM) is a unique listing tier on the Nasdaq stock exchange specifically designed for small and growing companies. It provides an accessible, less burdensome entrance into public trading compared to other market tiers such as the Global Market and Global Select Market. This section will delve deeper into the differences in requirements between these market tiers and provide insights into how a company can progress from one tier to another.
First, it is essential to note that Nasdaq Capital Market primarily focuses on listing companies with smaller market capitalizations, which typically fall under $300 million to $2 billion. It caters to early-stage companies in need of capital growth and to Special Purpose Acquisition Companies (SPACs).
The Nasdaq Global Market and the Nasdaq Capital Market have different listing requirements. The Nasdaq Global Market primarily lists mid-cap stocks, while the Nasdaq Capital Market caters to small-cap companies. The requirements for the Nasdaq Capital Market are less stringent than those of the Nasdaq Global Market but more demanding than some alternative investment markets like AIM.
To be listed on the Nasdaq Capital Market, a company must meet one or more of the three listing standards: equity standard, market value of listed securities standard, and total assets/total revenue standard. The equity standard requires stockholders’ equity to be at least $5 million and an operating history for two consecutive years. The other two standards only require a minimum public float of 1,000,000 shares, 300 shareholders, and three market makers.
In terms of net income requirements, the Nasdaq Capital Market has a slightly higher requirement than the other two standards, asking for $750,000 in the latest fiscal year or an average net income of $500,000 over the previous three fiscal years. The market value of publicly held shares must be at least $1 million and the minimum market value of listed securities is $50 million.
As a company grows, it may aspire to move from the Nasdaq Capital Market to the Global Market or the Global Select Market. The requirements for these tiers are more stringent than the Nasdaq Capital Market. Companies must meet specific financial and listing criteria, including higher market capitalization and increased public float thresholds.
In conclusion, the Nasdaq Capital Market is an essential listing tier for early-stage companies seeking a pathway to growth in the public markets. It provides less burdensome requirements compared to other tiers while maintaining high corporate governance standards. As companies grow and meet additional financial criteria, they may choose to progress from the Nasdaq Capital Market to higher tiers.
Understanding these differences will allow companies to make informed decisions about which tier is best suited for their current stage and growth plans. By staying informed on the nuances of each tier and its requirements, companies can set themselves up for success in their journey towards achieving a sustainable, long-term presence in the public markets.
Benefits and Drawbacks of Listing on the Nasdaq Capital Market
The Nasdaq Capital Market (Nasdaq-CM) presents a significant opportunity for early-stage companies looking to raise capital in public markets. This Nasdaq tier is specifically designed for smaller businesses that may not yet meet the more stringent requirements of other Nasdaq market tiers, such as the Global Market and Global Select Market. While listing on the Nasdaq Capital Market comes with its advantages, including increased visibility and credibility, it also comes with potential drawbacks like costs and regulations. Let’s delve deeper into these benefits and drawbacks:
Benefits of Listing on the Nasdaq Capital Market:
1. Increased Visibility and Liquidity: Listing on the Nasdaq Capital Market provides companies with heightened visibility in the investment community, allowing them to gain greater access to potential investors. This increased exposure often translates into improved liquidity for their shares as a larger investor base may lead to more trading activity.
2. Credibility and Market Recognition: A Nasdaq listing is widely regarded as a mark of credibility within the financial community. A listing on this stock exchange demonstrates that a company has met certain financial standards, which can attract potential investors and bolster investor confidence.
3. Access to Capital Markets: Listing on the Nasdaq Capital Market enables companies to access capital markets more easily, allowing them to potentially raise additional capital through share offerings or other financing mechanisms. This increased access to capital is essential for small businesses looking to grow and expand their operations.
4. Institutional Investor Interest: Being listed on Nasdaq can attract institutional investors who typically prefer larger, well-established companies. While these investors may not be interested in smaller companies listed on alternative markets, the reputation of a Nasdaq listing can help change this perception, potentially opening up new avenues for funding and growth opportunities.
Drawbacks of Listing on the Nasdaq Capital Market:
1. Costs and Fees: The costs associated with listing on the Nasdaq Capital Market can be quite substantial, including annual fees, transaction fees, and ongoing regulatory compliance expenses. These costs may limit the financial resources available to small businesses for growth and other strategic initiatives.
2. Regulatory Compliance: Listing on the Nasdaq Capital Market requires companies to adhere to a set of comprehensive regulations and reporting requirements. While these rules help maintain investor confidence, they can be time-consuming and expensive for smaller businesses to implement and manage.
3. Shareholder Dilution: The process of raising capital through share offerings or other financing methods can result in dilutive effects on existing shareholders. This dilution can lead to a decrease in the value of each individual share, potentially impacting the morale and motivation of long-term investors.
4. Departure from Alternative Markets: Companies listing on Nasdaq may need to leave alternative markets like AIM (Alternative Investment Market) where they previously traded due to the differing regulatory requirements and reporting standards between the two exchanges. This departure can require additional resources, costs, and time for the company and its investors to make the transition successfully.
In conclusion, the Nasdaq Capital Market offers numerous benefits for early-stage companies seeking greater visibility, access to capital markets, and credibility within the financial community. However, it also comes with its drawbacks, including significant costs, ongoing regulatory compliance requirements, potential shareholder dilution, and the departure from alternative markets. Companies must carefully consider these factors before deciding whether the benefits outweigh the drawbacks for their individual business needs.
Alternative Listing Markets: AIM versus Nasdaq Capital Market
When comparing alternative listing markets with the Nasdaq Capital Market (Nasdaq-CM), it is essential to consider factors such as regulation and cost structures. Both Nasdaq-CM and alternative investment markets like the Alternative Investment Market (AIM) serve unique purposes for small-cap companies looking to raise capital and eventually graduate to larger marketplaces.
The Nasdaq Capital Market, primarily known for listing early-stage companies with relatively lower market capitalizations, is an attractive option for companies that need to access funding while meeting less stringent initial listing requirements than other senior exchanges. In comparison, the Alternative Investment Market (AIM), a submarket of the London Stock Exchange (LSE), offers lighter regulation and more flexible entry criteria that cater specifically to smaller businesses with ambitious growth plans.
In terms of listing requirements for Nasdaq-CM and AIM, companies on Nasdaq-CM are required to meet at least one of three initial listing standards: equity standard, market value of listed securities standard, or total assets/total revenue standard. The equity standard, which requires a net income standard of $750,000, has the lowest requirement for market value of publicly held shares among Nasdaq-CM’s listing standards at $5 million. AIM, on the other hand, does not have any specific initial net income or market capitalization requirements but focuses on a company’s progress and its readiness to meet the regulatory and reporting requirements of a full listing on the main market of LSE.
Another significant difference lies in corporate governance. While Nasdaq-CM requires companies to comply with a code of conduct, an audit committee, independent directors, and other regulations across all tiers, AIM offers more flexibility with its “comply or explain” approach to regulation. This means that AIM-listed companies must either comply with the LSE’s rules or explain why they cannot do so in their annual report.
Considering costs is also crucial when evaluating the differences between Nasdaq-CM and AIM. While both markets offer various benefits, each comes with its unique cost structures. For instance, companies listing on Nasdaq-CM may face higher fees compared to AIM due to more stringent requirements such as filing annual reports and maintaining a public float of one million shares or more. On the other hand, AIM offers lower costs for smaller businesses looking to access capital markets without incurring significant ongoing costs and reporting obligations that come with a full listing on the main market of LSE.
The choice between Nasdaq-CM and AIM depends on various factors, including the size, growth potential, and long-term plans of your company. While Nasdaq-CM provides an accessible path for small-cap companies to access a larger investor base and potentially graduate to senior exchanges, AIM offers more flexibility with lighter regulation and lower costs for businesses looking to focus on their growth while preparing for a potential full listing in the future.
In conclusion, understanding the differences between Nasdaq Capital Market and alternative listing markets like AIM is crucial for small-cap companies considering a public offering. By carefully evaluating factors such as regulatory requirements, cost structures, and the potential long-term benefits of each market, businesses can make informed decisions about their growth strategy and capital raising plans.
Procedures for Listing on the Nasdaq Capital Market
The Nasdaq Capital Market (Nasdaq-CM) serves as an attractive listing destination for small and growing companies seeking access to capital markets. This section delves into the process of listing on the Nasdaq Capital Market, including required documentation and application procedures.
First, it’s important to note that companies must meet one of three listing standards: equity standard, market value of listed securities standard, or the total assets/total revenue standard. The requirements under each standard differ in terms of stockholders’ equity, net income, and minimum public float.
To initiate the listing process, a company should engage an investment banker to act as a sponsor. This individual or firm will help prepare and file the application with Nasdaq and ensure compliance with all necessary requirements. A sponsor can also facilitate negotiations with market makers (MMs) to provide liquidity for the new listing.
The application process begins by submitting the required documentation, such as a business description, financial statements, corporate governance documents, and proof of public float and shareholder ownership. All of these documents are essential to demonstrate the company’s eligibility under one of the three listing standards.
Once the application is complete, Nasdaq conducts an initial review to ensure all requirements have been met. This process includes an evaluation of the company’s business operations, financial statements, and governance structure to confirm their compliance with Nasdaq rules and regulations. The review can take anywhere from several days to a few weeks, depending on the complexity of the application and any potential issues uncovered.
Should the application pass the initial review, Nasdaq will then send a conditional approval letter outlining any remaining requirements or conditions that must be met before the company can begin trading on the exchange. This could include additional documentation, such as proof of market maker agreements, or addressing specific issues identified during the review process.
Once all conditions have been fulfilled and the final approval is granted, the company’s stock will commence trading on the Nasdaq Capital Market under a unique ticker symbol. The listing marks an important milestone for the company in its growth trajectory and provides access to a broader investor base.
In summary, the process of listing on the Nasdaq Capital Market involves careful preparation, submission of required documentation, initial review by Nasdaq, and fulfillment of any conditional requirements or conditions set forth by Nasdaq for final approval. The investment banker plays an essential role in guiding the company through this intricate process. With a better understanding of the listing procedure, companies can focus on meeting eligibility requirements and making a successful transition to the public markets.
Maintaining a Nasdaq Capital Market Listing: Corporate Governance and Compliance
The Nasdaq Capital Market (Nasdaq-CM) offers a more lenient entrance for smaller companies or Special Purpose Acquisition Companies (SPACs) to list, but the responsibilities associated with maintaining a listing on this exchange are no less stringent. In this section, we’ll dive deeper into corporate governance and compliance requirements that Nasdaq Capital Market listed companies must adhere to in order to remain compliant with Nasdaq regulations.
Nasdaq Capital Market companies face the same rigorous code of conduct as those on the Global Market or Global Select Market. This includes, but is not limited to, maintaining a Code of Ethics for its board members and senior management team, having an audit committee, and appointing independent directors. These requirements are essential for fostering transparency, accountability, and trust within the investment community.
1. **Code of Ethics:** A Nasdaq Capital Market company’s code of ethics should be designed to promote honest and ethical behavior among its board members, officers, employees, and other associated persons. The code sets forth standards for conduct that are expected when dealing with other employees, customers, suppliers, competitors, regulators, and the public. It also details procedures for reporting conflicts of interest and violations of the code.
2. **Audit Committee:** An audit committee is an essential component of a company’s governance structure, ensuring the integrity and reliability of financial reporting. The committee plays a significant role in overseeing the company’s financial reporting process, engaging external auditors, and addressing any issues that may arise. Compliance with the Sarbanes-Oxley Act (SOX) is mandatory for Nasdaq Capital Market companies, which sets strict guidelines for corporate governance, internal controls, and financial reporting transparency.
3. **Independent Directors:** Independent directors bring objective perspectives to a company’s boardroom, as they don’t have any material relationship with the company. They play a crucial role in providing oversight, ensuring that management acts in the best interests of the shareholders and adheres to ethical standards. Nasdaq Capital Market requires at least two-thirds (or a majority) of its board members to be independent directors.
Maintaining a Nasdaq Capital Market listing entails meeting ongoing reporting requirements, including timely filing of periodic financial reports with the Securities and Exchange Commission (SEC). Compliance with these regulations is essential for preserving investor confidence and ensuring a level playing field for all market participants. By adhering to Nasdaq’s rigorous corporate governance framework, companies listed on the Nasdaq Capital Market can foster long-term growth, attract investment, and build trust within the financial community.
Frequently Asked Questions (FAQ)
What is the Nasdaq Capital Market?
The Nasdaq Capital Market is a market tier on Nasdaq specifically designed for early-stage companies or those raising capital. It’s suitable for small companies, shell corporations looking to acquire other businesses, and those that don’t qualify for the more senior Nasdaq tiers due to market capitalization.
What are the key differences between the Nasdaq Capital Market and other tiers?
The Nasdaq Capital Market differs from other Nasdaq tiers, such as Global Market and Global Select Market, in terms of listing requirements. It is more lenient for initial listing but maintains similar corporate governance standards to keep a Nasdaq listing. Companies need to meet one of the three listing standards: equity standard, market value of listed securities standard, or total assets/total revenue standard.
Which companies primarily list on the Nasdaq Capital Market?
Companies that typically list on the Nasdaq Capital Market are early-stage or smaller businesses with lower market capitalizations (around $300 million to $2 billion). They often choose this tier because it provides a less encumbered entrance for listing and raising capital.
What is required to initially list on the Nasdaq Capital Market?
To initially list on the Nasdaq Capital Market, companies must meet the criteria under at least one of the three listing standards: equity standard, market value of listed securities standard, or total assets/total revenue standard. All the standards share common requirements like having a minimum public float of 1,000,000 shares and 300 shareholders but differ in other aspects, such as net income, operating history, and market value requirements.
Why is Nasdaq Capital Market preferred by smaller companies?
Smaller companies or those raising capital may choose the Nasdaq Capital Market because it offers less stringent initial listing requirements compared to other senior exchanges while requiring similar corporate governance standards to maintain a listing. This allows these businesses to grow and meet the requirements as they develop.
What is the Net Income standard for the Nasdaq Capital Market?
The net income standard requires $750,000 in the latest fiscal year or two of the last three years.
Is an operating history required to list on the Nasdaq Capital Market?
No, unlike other standards, the equity and market value of listed securities do not require a company to have an operating history before listing. However, the total assets/total revenue standard does require this condition.
What are the advantages of being listed on the Nasdaq Capital Market?
Being listed on the Nasdaq Capital Market provides several benefits such as increased visibility, credibility, and access to a larger pool of potential investors. It also allows companies to raise capital more easily and prepare themselves for future growth.
What are some drawbacks or challenges associated with being listed on the Nasdaq Capital Market?
Listing on the Nasdaq Capital Market comes with certain costs, including regulatory fees and ongoing reporting obligations. Companies must comply with governance requirements to maintain their listing, which can be challenging for smaller businesses.
How does a company progress from one Nasdaq tier to another?
A company may move from one Nasdaq tier to another as it grows and meets the requirements of the next tier. For example, a company could list on the Nasdaq Capital Market initially and later work its way up to the Global Market or Global Select Market.