Info 1: NASDAQ definition
Info 2: how it’s works
Info 3: NASDAQ charges vs other stock exchange
Info 4: NASDAQ delisting rules
Quick pick
National Association of Securities Dealers Automatic Quotation (Nasdaq) is a stock exchange industry that offers a platform to buy and sell public Corporation stocks.
Opening information:
NASDAQ is the name of the one industry which represents the stock exchange. It means National Association of Securities Dealers Automatic Quotation.
This article contains information about what is NASDAQ, how it works, NASDAQ charges and other stock exchanges, and finally NASDAQ delisting rules.
Info 1: National Association of Securities Dealers Automatic Quotation definition
Whenever any of the goods or services need to be consumed or used it must have someplace to exchange the goods or services for the needed money.
That place is central for all the customers to buy and sell any kind of product for any modified price. And also it is a place where distribution and production occur for all kinds of items.
That items are promoted and sold by the agent, broker, dealers, and affiliates who looking to make a spread commission on the selling resources.
But when comes to buying and selling goods in one central place, it’s not a central place for the whole world but it’s a core place for some amount of consuming people who use those locations to purchase and sell any matters.
There are tens and hundreds of central places to buy and sell goods items which that place is known as the market. But which that central place are exchanging place of such whole market.
This same concept applies to NASDAQ because NASDAQ is the exchange place for selling and buying the stock for the whole public market. Indeed physical goods offer the place for business ownership shares that are listed for public people to buy and sell centralized.
Among those listed items of stock are promoted by agents, dealers, and brokers to any kind of consumers to buy and sell the stocks at any time at any time in the world.
So let’s dive into how the NASDAQ functions and works involving the whole stock market.
Info 2: National Association of Securities Dealers Automatic Quotation works
NASDAQ is not the stock market instead it’s a stock exchange industry that occupies the public organization and helps to trade the industry shares for exchange money.
There are tens and hundreds of stock exchanges around the world, but the exchange that is American-based next to the New York Stock Exchange as the second largest market capital holder is what is known as the National Association of Security Dealers Automation Quotation.
However, it has occupied more than 3500 companies in the US, which are traded by big institutions to small kinds of retail Investors daily.
Each of the companies looking to be listed in the NASDAQ must meet their minimum requirements, which their demanding are 1.25 million shares must be outstanding while listing and excluding the other insider holding of directors and managers.
The stock requires a minimum bid of 4 dollars for each share but the 5 dollars is good. then after the listing, it’s required to hold at least above 1 dollar for ninety consecutive days.
Most importantly the listing companies must need to have at least above then 45 million dollars if its listed through an initial public offering. Or if certain companies use direct listing, they just need to meet a minimum of 100 million dollars in market capital.
Moreover, it also needs to have a minimum operating income before the tax of 1 million dollars, with the least shareholders equity of 15 million dollars.
Supposedly if the company wouldn’t meet the operating income of 1 million dollars for the last 3 years, it must need to have a low $30 million equity to list in the NASDAQ equity. So now let’s jump into knowing what was the charges difference in the NASDAQ.
Info 3: NASDAQ charges vs other stock exchange
When compared to any other stock exchange with NASDAQ it’s quite had costly charges. if the listed companies had 10 million shares it charges about 48,000 dollars annually.
On the other side, If the outstanding shares are above 75 million dollars, it charges about $107,500, and the outstanding shares over the 150 million dollars are charges about $86,000, or if the listed companies is foreign it costs $167,000 annually.
Next, to make more clear about the delisting requirements of NASDAQ, let’s look into one brief example.
Info 4: NASDAQ delisting rules
Like minimum shares for 4 4-dollar bids for newly listed companies, after the listing period, the stock price would drop well below expected.
When trade is below the $1 price for the last 30 days it would receive the delisting notice to their Industry Management. it’s been delisted from the NASDAQ stock exchange.