Companies are subject to ongoing monitoring, and failure to maintain compliance can result in warnings, fines, or ultimately, delisting. For the GSM, a company must demonstrate not only a minimum market value of publicly held common stock but also prove consistent profitability or a specified level of shareholder equity and cash flow.
Audit Committees and Nasdaq Listing Standards Compliance Requirements
Each tier functions as a distinct ecosystem with its own specific listing standards, creating a spectrum of eligibility criteria that companies must navigate. For the GM and CM, the financial tests are adjusted, often focusing on assets, revenue, or a combination of factors rather than pure profitability, thereby widening the aperture for diverse business models.
A key requirement across all tiers is the public holding of a minimum number of shares, ensuring that the stock is widely distributed and not concentrated in the hands of a few insiders. These governance rules are designed to ensure transparency and accountability, providing investors with confidence in the integrity of the company's leadership and financial reporting processes.
Audit Committees and Nasdaq Listing Standards Compliance
The market value of the company's publicly held shares serves as a critical metric, acting as a barometer of investor confidence and market perception. The GSM, reserved for the largest and most established entities, demands the highest levels of corporate governance, market value, and liquidity.
More About Nasdaq listing standards
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