Last week's overview of the trading markets netted me some feedback from Nasdaq
In short, the Nasdaq market is currently really divided into two entities: the Nasdaq National Market and the Nasdaq Capital Market (formerly known as the Nasdaq SmallCap Market). The two markets do have separate initial listing criteria, and of course, the former SmallCap market's minimums are lower.
You rarely see any distinction made between the two market tiers, though. The Fool, for example, is happy to mark Capital Market participants like its largest member Hansen Natural
Starting next week, Nasdaq will come in three flavors rather than two, thanks to the addition of a Nasdaq Global Select designation. It's a higher listing standard than the National Market (which will also change its name to Nasdaq Global Market), demanding substantially higher revenues, earnings, and/or market caps, and designed to be the toughest listing requirements in the world.
Nasdaq is clearly fed up with playing second fiddle to NYSE Group
I haven't been told to change the way I tag Nasdaq companies in the future to distinguish between Global Select and plain Global stocks, though there's still time for that. About one-third of the combined Nasdaq markets of today will qualify for the new listing standard, and investors who like to stick with the perceived higher-quality companies of the NYSE might be enticed to take a look at the new kid on the block.
Just remember that these are still the same excellent companies that are leading the Nasdaq today; they're just held up to a brighter, less forgiving light. Will it be the spotlight of increased market visibility, or a vanity mirror that shows all the wrinkles and pimples? Again, we'll just have to wait and see.
Further Foolish reading:
- Why do stock exchanges matter?
- Some winners live in the small-cap wing ...
- ... but others play with the big boys.
NYSE Group is a Rule Breakers pick, and Hooker Furniture is a Hidden Gems selection. Take the newsletter of your choice for a 30-day free trial.
Fool contributor Anders Bylund owns none of the stocks discussed today, but, of course, he holds a good number of Nasdaq-traded shares. Foolish disclosure is your flashlight in the dark wilderness of the markets.