How does NASDAQ measure stockholders equity when qualifying a company for initial listing on The NASDAQ Stock Market?
To qualify a company for initial listing, NASDAQ uses the stockholders’ equity as reported on a company’s most recent balance sheet. The company’s financial statements must be: (i) prepared in accordance with U.S. GAAP; (ii) reconciled to U.S. GAAP; or (iii) prepared in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board, for companies that are permitted to file financial statements using those standards with the Commission. NASDAQ reserves the right to make adjustments to estimate stockholders’ equity at the time of listing. For example, a burn rate may be calculated with the aid of historically published income statements and applied to estimate a company’s stockholders’ equity at the time of listing, if the company has previously reported net losses.
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- How does NASDAQ measure stockholders equity when qualifying a company for initial listing on The NASDAQ Stock Market?
