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Comparison of U.S. Stock Markets
Cannabis Investment Report |
December 2017
U.S. stock markets vary significantly in terms of their financial, liquidity and corporate governance
requirements. Most U.S. publicly traded cannabis-related companies trade on the OTC due to its less
stringent requirements, as compared to Nasdaq and the NYSE. The following chart provides a com-
parison of Nasdaq, the NYSE and the OTC.
U.S. Stock Market Comparison
Nasdaq Global Select Market
Market Tiers Nasdaq Global Market Nasdaq Capital Market Numbenok Total 3,200+ c pisted Cannabis- 4 ompanies related ( Value Median $334.0 million Must meet financial and liquidity criteria under at least one category Listing or of Standards. Criteria include: Trading Stockholders’ Equity, Market
Capitalization, Operating History, Net Income, Amount of Publicly Held Shares and Number of Shareholders.
Requirements
Nasdaq Global Select
Minimum Market: $4.00 sel Nasdag Global Market: $4.00 Price Nasdaq Capital Market: $2.00 + Annual audit Corporate + Audit committee and Governance compensation committee
Requirements + Majority of independent
directors
Reporting Requirements
Required to file quarterly and annual reports
Registration Requirements
Required to register with the SEC
NYSE NYSE American
2,800+
$29.6 trillion $1.5 billion
Must meet financial and liquidity criteria under at least one category of Standards. Criteria include: Stockholders’ Equity, Market Capitalization, Pre-tax Income, Amount of Publicly Held Shares and Number of Shareholders.
NYSE: $4.00
NYSE American: $2.00
* Annual audit
+ Audit committee and compensation committee
* Majority of independent directors
Required to file quarterly and annual reports
Required to register with the SEC
OTCQX OTCQB OTCPink
10,300+
212
$247.7 billion $0.5 million
OTCQX: Must meet minimum financial and liquidity criteria
OTCQB and OTCPink: No financial and liquidity criteria
OTCQX: $0.10 OTCQB: $0.01
OTCPink: None
OTCQX and OTCQB:
* Annual audit
+ Audit committee
Two independent directors
OTCPink: No requirements
Not required to make regular filings
Not required to register with the SEC
‘Source: S&P Global Market Intelligence
126
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