The NASDAQ Stock Market is one of the world’s largest and most prestigious stock exchanges, home to technology giants, innovative startups, and global leaders across industries. For companies looking to go public, NASDAQ offers not just visibility and liquidity, but also structured listing options that cater to different levels of corporate maturity and financial standing.
Overview of the NASDAQ Market Tiers and Listing Criteria
To ensure a fair and transparent market, NASDAQ enforces specific listing requirements and operates across three distinct market tiers: the
- NASDAQ Global Select Market,
- NASDAQ Global Market, and
- NASDAQ Capital Market.
Each platform has varying requirements based on company size, profitability, and market value. Understanding these criteria is crucial for IPO preparation and determining which tier best fits your business.
Listing Criteria Overview:
| Criteria | Global Select Market | Global Market | Capital Market |
|---|---|---|---|
|
Income (Earnings Test) |
≥ $11 million over past 3 years (with positive net income in each of the 3 years and ≥ $2.2 million in the latest year) | ≥ $1 million in latest fiscal year or 2 of last 3 years | ≥ $750,000 in latest fiscal year or 2 of last 3 years |
| Alternative Tests | Available | Available | Available |
| Public Float (Shares held by public) | ≥ 1.25 million shares | ≥ 1.1 million shares | ≥ 1 million shares |
|
Market Value of Unrestricted Publicly Held Shares |
$45 million | $8 million | $5 million |
| Public Holders | At least 450 round lot shareholders | At least 400 round lot shareholders | At least 300 round lot shareholders |
| Bid Price | $4 | $4 | $4 |
Round lot holder = shareholder holding at least 100 shares.
Requirements for the NASDAQ’s Three IPO Market Segments
NASDAQ Global Select Market
This is NASDAQ’s top tier, reserved for the most established companies with strong financials and strict corporate governance standards. Companies listed here are considered blue-chip caliber, comparable to those listed on the NYSE.
- Requirements: Highest in terms of market capitalization, income, stockholder equity, and liquidity
- Ideal for: Large, profitable firms with strong track records
- Annual re-evaluation: Companies must continue to meet strict maintenance criteria
NASDAQ Global Market
This tier hosts mid-sized companies that meet solid financial and liquidity benchmarks but may not meet the elite standards of the Global Select Market.
- Requirements: Moderate thresholds for financial metrics and public float
- Ideal for: Growth-stage or international companies with steady performance
NASDAQ Capital Market
Tailored to small-cap companies, this market provides an entry point for emerging businesses. It offers access to public capital while maintaining the integrity of listing standards, albeit with more flexible thresholds.
- Requirements: Lowest minimums among the three, particularly in revenue, equity, and market cap
- Ideal for: Startups or smaller public firms with growth potential
Why NASDAQ Platform Choice Matters for a Business IPO Journey?
Choosing the right NASDAQ market tier is not just about qualification, it’s a strategic decision. The Global Select Market sends a strong signal of maturity and financial strength, often attracting institutional investors. The Global Market allows mid-tier companies to gain credibility and visibility. The Capital Market, while more accessible, still provides the regulatory oversight and prestige of NASDAQ.
Finding Your Ideal NASDAQ US IPO Market
Going public on NASDAQ opens doors to capital, investor trust, and global visibility. Whether a company is large and established or just beginning its growth trajectory, NASDAQ’s structured tiers and flexible listing standards provide multiple pathways to enter the public market. Understanding these platforms and choosing the right standard is essential to a successful listing journey.
The path to a successful IPO on NASDAQ starts with proper preparation and expert guidance. At CNP, we specialize in NASDAQ listing requirements and market tier assessment. Through detailed financial analysis and strategic planning, we help companies determine their optimal NASDAQ market positioning. Contact us and meet our corporate finance advisor to evaluate your listing potential.
