Nasdaq National Market (Nasdaq-NM)
What Was the Nasdaq National Market (Nasdaq-NM)?
The term Nasdaq National Market (Nasdaq-NM) alluded to one of the market tiers of the Nasdaq. The Nasdaq-NM is a great many people's thought process of when they alluded to the Nasdaq. This tier was comprised of in excess of 3000 companies whose base comprised of domestic and foreign shareholders.
These companies additionally met rigid financial requirements and agreed to specific corporate governance standards to be remembered for this tier. The Nasdaq-NM was broken up into two new tiers in 2006, the Nasdaq Global Select Market and the Nasdaq Global Market.
Figuring out Nasdaq National Market (Nasdaq-NM)
The Nasdaq is the biggest electronic stock exchange in the world and the second-biggest in the United States after the New York Stock Exchange (NYSE). The exchange succeeded over-the-counter (OTC) curb trading and has the highest trading volume in the world. This regularly brings about a more unstable trading environment than numerous traditional stock exchanges. It became recognized as a stock exchange by the Securities and Exchange Commission (SEC) in June 2006. In excess of 4,000 companies trade on the exchange.
Nasdaq is an abbreviation for the National Association of Securities Dealers Automated Quotation.
The Nasdaq National Market was one of two tiers that made up the exchange. Every tier comprised of companies that met specific listing and regulatory requirements. The Nasdaq-NM comprised of around 3,000 actively traded mid-and huge cap companies. The second tier was called the Nasdaq SmallCap Market. As the name suggests, it comprised of small-cap companies or those with the potential for growth.
On June 23, 2006, the exchange announced that it separated the Nasdaq-NM into two distinct tiers, making three new ones. The change was made to adjust the exchange to its international reputation. Every tier was given a brand new name:
- Nasdaq Capital Market: formerly known as the Nasdaq SmallCap Market for small-cap companies
- Nasdaq Global Market: beforehand part of the Nasdaq National Market for around 1,450 mid-cap stocks
- Nasdaq Global Select Market: the most current tier, which was already part of the Nasdaq National Market, and records around 1,200 [large-cap](/enormous cap) companies
Trading on the new third tier, the Nasdaq Global Select Market, authoritatively started on July 3, 2006.
The listing and regulatory requirements for every tier are unique and become more rigid. For example, the Global Market tier expects companies to have:
- Huge net substantial assets or operating income
- A base public float of 1,100,000 shares
- Something like 400 shareholders
- A bid price of no less than $4
Special Considerations
Smaller companies that don't fit the bill for the Nasdaq National Market trade on the Nasdaq Capital Market. To list on the Nasdaq Capital Market, companies are required to have a net income standard of $750,000, a base public float of a million shares, no less than 300 shareholders, and a bid price of no less than $4 with an exception that has certain requirements.
Listing on the Global Select Capital Market requires at least no less than 450 round parcel or 2,200 total shareholders, a float of 1,250,000 shares, and a base bid price of $4.
The Nasdaq
The Nasdaq was laid out in 1971. It was the principal stock exchange that listed companies electronically. At a certain point, it had around 5,000 listed companies that were traded. It was initially owned by the National Association of Securities Dealers (NASD), which in the end merged with the NYSE regulatory board to turn into the Financial Industry Regulatory Authority (FINRA). It is presently a standalone company.
Notwithstanding the stock market, starting around 2021, the company likewise possesses and works several stock exchanges in Europe, remembering exchanges for Copenhagen, Helsinki, Reykjavik, Stockholm, Riga, Vilnius, and Tallinn.
Features
- Companies listed on this tier were required to meet rigid financial requirements and needed to stick to corporate governance standards.
- The Nasdaq National Market was one of the Nasdaq's two market tiers.
- It comprised of around 3,000 mid-and enormous cap companies.
- The Nasdaq NM was broken up into two new tiers in June 2006: The Nasdaq Global Market for mid-caps and the Nasdaq Global Select Market for enormous caps.
