Listing requirements for NASDAQ NMS (there are two options used as
qualifiers, shown in the 2 columns):
Net income (in latest FY or 2 of last 3 FY's): $400k no requirement
Pretax income (same constraints) : $750k no requirement
Net tangible assets : $4M $12M
Public float (shares) : 500k 1M
Mkt value of float : $3M $15M
Operating history : n/a 3 years
Minimum bid price for stock : $5 $3
Number of market makers : 2 2
Number of shareholders : 400 400
Listing requirements for NASDAQ Small Cap:
Total assets :$4M
Total stockholder equity :$2M
Public float :100,000 shares
Mkt value of float :$1M
# shareholders :300
Minimum bid price for stock :$3
# market makers :2
This information is from 1996 so it may have changed.
Those that don't meet either of these requirements are the true
"over the counter" stocks or are traded via pink sheets. These are
generally very small companies, but sometimes large foreign
companies trade in the US via this method because they don't want
to conform to SEC disclosure requirements.
As far as stops on NASDAQ NMS stocks, via E-Schwab, some can, some
can't. Haven't gotten a clear answer on which can and which can't,
but it appears to be related to trading volume. I've never had a
"sorry, no stop orders allowed" message on a stock that trades over
100K shares, and I've used closing stops for both longs and shorts,
AND opening stops for longs and shorts. In general though, most
discount brokers will not allow a stop of any form or
any duration for any NASDAQ stock.
Most full service brokers will allow stops on anything; some monitor
it personally, some are monitored by their trading desk. Commissions
are higher, but its all relative. After you've been saved by a few
stops, the higher commissions are gravy.
dh |
