How are Nasdaq stocks selected?

Stocks on the Nasdaq Stock Market are grouped into 3 tiers:

• The NASDAQ Global Select Market - For for more restrictive companies that operate or sell their products/services internationally.
• The NASDAQ Global Market - For companies that operate or sell their products/services internationally.
• The NASDAQ Capital Market - For companies wishing to raise capital.

Selection criteria for different tiers are different. For example, a company must the following criteria to be listed in NASDAQ Global Select Market:

• Pre-Tax Earnings - Aggregate in prior three fiscal years above or equal to $11M, and each of the prior three fiscal years above or equal to $0, and each of the two most recent fiscal years above or equal to $2.2M
• Cash Flows - Aggregate in prior three fiscal years above or equal to $27M, and each of the prior three fiscal years above or equal to $0.
• Market Cap - Average above or equal to $850M over prior 12 months.
• Revenue - Previous fiscal year above or equal to $90M.
• Total Assets - Above or equal to $80M.
• Stockholders’ Equity - Above or equal to $55.
• Bid Price - Initial bid price must be above or equal to $4.00.
• Publicly Held Shares - Above and equal to 1,250,000.
• Market value of publicly held shares - Above and equal to $110M.
• Total Shareholders - Above and equal to 550.
• Average monthly trading volume over past twelve months - Above and equal to 2,200.

⇒ Major Stocks on Nasdaq Stock Market

⇐ What Is Nasdaq Stock Market

⇑ Introduction on Nasdaq Stock Market

⇑⇑ Nasdaq Stock Market