By:  Cydney Posner

Hoping to create a "race to the top," Nasdaq has announced its intent to create a new market tier, the "NASDAQ Global Select Market," which will have the highest initial financial and liquidity listing standards "in the world." (You go Nasdaq!) The new tier also incorporates Nasdaq's corporate governance standards. Nasdaq expects to implement the new tier on July 1, 2006. Global Select Market companies will receive an enhanced package of services from Nasdaq to support public companies in communications, visibility, management and board support. Nasdaq will continue to disseminate the Nasdaq Composite Index and will launch indices based on the two new segments.  (Click here for the corporate fact sheet.)

Currently, over 1,000 Nasdaq companies would qualify for the Global Select tier. Beginning in 2007, Nasdaq Listing Qualifications will review all Nasdaq-listed companies each October; qualified companies will be placed on the Global Select Market the following January. Qualified National Market companies will automatically be transferred to Global Select, including all members of the NASDAQ-100. Qualified Capital Market (formerly, called "Small Cap") companies will have the option to move to the Global Select tier or remain on the Capital Market. Companies may also apply to upgrade at any point during the year, and new National Market listings will be placed on the Global Select Market if they qualify. The continued listing standards will be the same for the Global Select and the National Markets.

Listing fees for the Global Select Market will be the same as for the National Market. Companies transferring from the National Market will not be assessed additional entry or application fees to list on the Global Select Market.

In addition, and perhaps of more immediate significance, the name of the Nasdaq National Market has again been changed: now it will be referred to as the "NASDAQ Global Market." And, of course there's also the "NASDAQ Capital Market," which recently changed its name from the "NASDAQ Small Cap Market."

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