What is the minimum bid price for a company to be listed on NASDAQ?

What is the minimum bid price for a company to be listed on NASDAQ?

• A. $2
• B. $3
• C. $4
• D. $5

Answer: (C)

For a company to be listed on NASDAQ, it must meet several listing requirements, one of which pertains to the minimum bid price of its shares. Specifically, the minimum bid price required for initial listing on NASDAQ is $4. This threshold ensures that the company has sufficient market value and liquidity, which are essential for investor confidence and adequate trading activity. A company that fails to maintain this minimum bid price may face delisting procedures, which emphasizes the importance of this requirement. This minimum price is designed to maintain a standard of quality and stability among listed companies, thereby protecting investors. Understanding the importance of maintaining a minimum bid price helps in evaluating a company's eligibility for listing and its potential performance in the market.

For a company to be listed on NASDAQ, it must meet several listing requirements, one of which pertains to the minimum bid price of its shares. Specifically, the minimum bid price required for initial listing on NASDAQ is $4. This threshold ensures that the company has sufficient market value and liquidity, which are essential for investor confidence and adequate trading activity.

A company that fails to maintain this minimum bid price may face delisting procedures, which emphasizes the importance of this requirement. This minimum price is designed to maintain a standard of quality and stability among listed companies, thereby protecting investors.

Understanding the importance of maintaining a minimum bid price helps in evaluating a company's eligibility for listing and its potential performance in the market.