What type of stocks are traded in the nasdaq market?

8th Nov 2009 by Joseph Pousada

The stocks that are considered “traded on Nasdaq” are stocks that are listed. There are two levels of being listed. The first is the “Nasdaq Capital Market” (formally known as “Nasdaq Small Cap.”) and there are a set of financial criteria that needs to be met to be eligible to apply for listing. Another listing is the “Nasdaq National Market” (NNM) with a stricter set of financial criteria to be eligible to apply for listing. Typically the companies listed on the NNM tend to have a larger market capitalization. If the stocks are not listed it may be traded on the OTCBB (Over the counter bulletin board). If a stock is traded on the OTCBB it is has not “traded on Nasdaq” despite the fact that the OTCBB is operated by the Nasdaq. The OTCBB also has different trading rules for the issues that are traded there.

Reference:
http://www.nasdaq.com/about/NNM.stm
http://ir.nasdaqomx.com/releasedetail.cfm?ReleaseID=176703
http://www.nasdaq.com/about/listing_information.stm


This answer is the subjective opinion of the writer and not of FinancialAdvisory.com