A firm must fulfill various standards, including having a certain number of shareholders and outstanding shares valued at a predetermined minimum price, to become listed on the Nasdaq. The company must continue to satisfy the minimal listing standards in order to maintain its Nasdaq listing; otherwise, it runs the risk of being removed from the Nasdaq exchange. An organization must uphold continuous standards set by the exchange to remain listed. Regardless of how long has gone by since the company’s initial offering, these standards convince investors that any firm listed is trustworthy. Failure to satisfy the market value and minimum bid price requirements are typical grounds for delisting a firm from Nasdaq.
Companies listed on the Nasdaq Stock Market must continue to comply with the listing standards. Nasdaq will delist a firm if it cannot meet the minimal standards. Delisting may occur if a firm doesn’t achieve a minimum bid price of one dollar for thirty straight trading days. When this happens, Nasdaq sends the firm a deficiency notice. A firm has 180 calendar days after receiving a deficiency notice to get back into compliance. During this period, the firm must acquire a closing price of one dollar or higher for ten straight trading days. A delisting letter will be sent to a firm by Nasdaq if it violates the minimum requirements during the first or subsequent grace period.