Listing Requirements: How listing standards (e.g., profitability thresholds) affect stock volatility
Key Takeaways Listing tiers matter : Nasdaq's Global Select Market has stricter requirements ($55M equity) but correlates with 20% lower volatility than Capital Market listings . Cross-listing cuts volatility : 82% of Latin American stocks saw reduced price swings post-ADR listing due to stricter disclosure rules . Governance = stability : Majority-independent boards (Nasdaq requirement) lower volatility by curbing insider trading risks . Market safeguards help : Circuit breakers and LULD halts prevent panic selling during 7-20% S&P 500 drops . Profitability lowers risk : Stocks meeting Nasdaq’s net income standard ($750K/year) show steadier returns . How Listing Standards Directly Shape Stock Volatility Lets talk about listing requirements, right? Exchanges like Nasdaq use these rules to filter which companys get listed. Stricter standards mean only financially strong companys with transparent operations get in. This isn't just paperwork—it directly affects how wildly a ...