NASDAQ recently filed a proposed rule change with the SEC. Upon taking effect, the rule will change the way total assets and shareholders’ equity are calculated for listing purposes on the NASDAQ Global Select Market. To conform with NYSE’s treatment under their comparable standard, NASDAQ proposes to delete the requirement that total assets be demonstrated as of the close of the most recent fiscal year. Under the proposed Rule, the $80 million total asset threshold for listing on the NASDAQ Global Select Market may be satisfied on the most recent publicly reported financial statements. NASDAQ also proposes to add a definition explaining what adjustments will be made to total assets and shareholders’ equity to reflect the use of proceeds and acquisitions and dispositions. These adjustments are identical to the adjustments specified in the NYSE Listed Company Manual. The proposed rule change was filed on April 1, 2011 and will take effect after the 30-day operative delay period. NASDAQ has asked the SEC to waive the 30-day operative period to allow companies to take advantage of the proposed rule change immediately.
To view the proposed NASDAQ rule amendment, click here.