NASDAQ-listed companies tend to be more growth-oriented. Small-cap tech enterprises in information technology, biotechnology, and other fields have no desire to seek status. Their objective is to maintain low expenses so they may retain more cash to support expansion. It is economical for a smaller company to get listed on the NASDAQ. For IPOs, the Listing and Compliance Costs are comparably lower in NASDAQ. Entry costs for Nasdaq Global Select and Global Markets depend on the number of shares and start at about 150,000 US Dollars. The admission fee for Nasdaq Capital Market is approximately 75,000 US Dollars.
Although the exchanges may seem the same, they are not. NSDAQ is , in fact a broker-dealer market. This indicates that the NASDAQ exchange serves as the counterparty for each trade executed there. As a result, when shareholders sell their shares, NASDAQ purchases them from them even though it does not have a seller to whom it may return the shares. This implies that the NASDAQ must always hold a predetermined number of shares until a buyer is found. However, a broker-dealer driven market is where the liquidity is stronger when prices become particularly volatile.