The NASDAQ listing agreement is a document that outlines the terms and conditions under which a company can list its shares on the NASDAQ stock exchange. NASDAQ is the second-largest stock exchange in the world by market capitalization, and it is a popular choice for companies looking to go public.
The listing agreement has several important sections, including the company`s obligations and responsibilities, the rights and obligations of NASDAQ, and the procedures for compliance and enforcement. The agreement also includes the criteria that a company must meet in order to be eligible for listing on NASDAQ.
One of the key requirements for listing on NASDAQ is meeting minimum financial standards. This includes having at least three years of audited financial statements, meeting minimum revenue and equity requirements, and maintaining a minimum stock price of $1.00. The company must also have a minimum number of shares outstanding and a minimum market value of publicly held shares.
Another requirement for listing on NASDAQ is meeting corporate governance standards. This includes having a majority of independent directors on the board, having an audit committee comprised entirely of independent directors, and having a code of ethics and compliance program in place.
The listing agreement also outlines the responsibilities of the company to comply with ongoing reporting requirements. This includes filing annual and quarterly reports, disclosing material events promptly, and maintaining accurate and complete records.
In addition to meeting these requirements, companies must also pay fees to NASDAQ for listing and ongoing maintenance. These fees can vary depending on the size and complexity of the company.
Overall, the NASDAQ listing agreement is a crucial document for companies looking to list their shares on the NASDAQ stock exchange. It provides a clear framework for compliance and governance, and it establishes a strong set of expectations for both the company and NASDAQ. By meeting these standards, companies can gain access to a large pool of global investors and unlock the benefits of public ownership.