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Nasdaq Listing Requirements...tough Set Of Standards...

4matic

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As quoted from "Investopedia"...

Interesting data...

Not sure how Elio Motors currently qualifies for a Nasdaq listing...



Major stock exchanges, like the Nasdaq, are exclusive clubs - their reputations rest on the companies they trade. As such, the Nasdaq won't allow just any company to be traded on its exchange. Only companies with a solid history and top-notch management behind them are considered.

The Nasdaq has three sets of listing requirements. Each company must meet at least one of the three requirement sets, as well as the main rules for all companies.

Listing Requirements for All Companies
Each company must have a minimum of 1,250,000 publicly-traded shares upon listing, excluding those held by officers, directors or any beneficial owners of more then 10% of the company. In addition, the regular bid price at time of listing must be $4, and there must be at least three market makers for the stock. However, a company may qualify under a closing price alternative of $3 or $2 if the company meets varying requirements. Each listing firm is also required to follow Nasdaq corporate governance rules 4350, 4351 and 4360. Companies must also have at least 450 round lot (100 shares) shareholders, 2,200 total shareholders, or 550 total shareholders with 1.1 million average trading volume over the past 12 months.

In addition to these requirements, companies must meet all of the criteria under at least one of the following standards.

Listing Standard No. 1
The company must have aggregate pre-tax earnings in the prior three years of at least $11 million, in the prior two years at least $2.2 million, and no one year in the prior three years can have a net loss.

Listing Standard No. 2
The company must have a minimum aggregate cash flow of at least $27.5 million for the past three fiscal years, with no negative cash flow in any of those three years. In addition, its average market capitalization over the prior 12 months must be at least $550 million, and revenues in the previous fiscal year must be $110 million, minimum.

Listing Standard No. 3
Companies can be removed from the cash flow requirement of Standard No. 2 if the average market capitalization over the past 12 months is at least $850 million, and revenues over the prior fiscal year are at least $90 million.

A company has three ways to get listed on the Nasdaq, depending on the underlying fundamentals of the company. If a company does not meet certain criteria, such as the operating income minimum, it has to make it up with larger minimum amounts in another area like revenue. This helps to improve the quality of companies listed on the exchange.

It doesn't end there. After a company gets listed on the market, it must maintain certain standards to continue trading. Failure to meet the specifications set out by the stock exchange will result in its delisting. Falling below the minimum required share price, or market capitalization, is one of the major factors triggering a delisting. Again, the exact details of delisting depend on the exchange.
 
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stts

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Yea, its a hail marry throw, but at least hes out there throwing it. And a broker would not even have filed the application if he didnt see a glimmer of hope of sneaking in. We will know more soon on this one. :)
 

Rob Croson

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I looked at this about a year or so ago, when there was a rumor going around that some brokers were going around telling potential investors that Elio Motors was going to get NASDAQ listed. I found that same set of three requirements. And my conclusion then was the same as yours now: "Not sure how Elio Motors currently qualifies for a Nasdaq listing..."

 

4matic

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I looked at this about a year or so ago, when there was a rumor going around that some brokers were going around telling potential investors that Elio Motors was going to get NASDAQ listed. I found that same set of three requirements. And my conclusion then was the same as yours now: "Not sure how Elio Motors currently qualifies for a Nasdaq listing..."

I tend to agree with you...

After reviewing the previous 12 months of Elio Motors SEC documents (as posted on EDGAR)...it's puzzling to understand how Elio favorably interprets the Nasdaq regulation & listing requirements...

Per their own SEC filing data...they appear to be a long way from qualifying for Nasdaq representation...
 
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stts

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if you look at there current stock, it sure seems many believe it. Wow. Really thought anyone who invested in Elio stock was making a bad investment decision. Now many more then doubled their money. Congrats.

Looks are kinda deceiving. Only 100,000 shares have been bought to drive the price up. If any of those people tried to actually sell those shares, they would find not many buyers. So they are mostly stuck with those shares till good news makes buyers go crazy.
 

4matic

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if you look at there current stock, it sure seems many believe it. Wow. Really thought anyone who invested in Elio stock was making a bad investment decision. Now many more then doubled their money. Congrats.

Like any thinly traded security with no revenues...the trading ranges can be huge...

Elio stock has appreciated 117% in 5 days...this is not the real word of safe investments...day trader's at best...

Elio Reg A+ stock is purely speculative ...the float is so darn small...I remember when it hit $72 in early days of trading...

Elio Reg A+ stock...and the word investment should not be used in the same sentence...

Just remember...for every stock transaction there is a buyer & seller...

Some are happy to buy...some are just fortunate to find a willing buyer...
 
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Donnyboy

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Bottom line is nothing has come out that would justify a move from $4.50/sh to $10/sh in 4 days. Nothing! Especially not a delay to 2019, more dilution of current shareholders, and only the possibility that NASDAQ would accept them on on their exchange. So in my opinion there's something behind the scenes that's sending it up so much. Maybe GM, Ford, or Toyota will just buy the whole company. If they bought all the shares at $10-$12 it's still chump change for them. A cynical view would say that manipulators are driving the price up so they get more money when they issue new stock. Certainly you want to sell new shares at $10 instead of $4.50. Another possibility is a hedge fund has been buying shares to help push the price up. Tomorrow they will call Paul and ask him if he likes what they've done with the share price. Then they will offer him a loan for $300 million with a punitive interest rate. Take it and the hedge fund will be kind to the stock. Reject the offer and they'll short the stock to oblivion.
 

stts

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Bottom line is nothing has come out that would justify a move from $4.50/sh to $10/sh in 4 days. Nothing! Especially not a delay to 2019, more dilution of current shareholders, and only the possibility that NASDAQ would accept them on on their exchange. So in my opinion there's something behind the scenes that's sending it up so much. Maybe GM, Ford, or Toyota will just buy the whole company. If they bought all the shares at $10-$12 it's still chump change for them. A cynical view would say that manipulators are driving the price up so they get more money when they issue new stock. Certainly you want to sell new shares at $10 instead of $4.50. Another possibility is a hedge fund has been buying shares to help push the price up. Tomorrow they will call Paul and ask him if he likes what they've done with the share price. Then they will offer him a loan for $300 million with a punitive interest rate. Take it and the hedge fund will be kind to the stock. Reject the offer and they'll short the stock to oblivion.

Yup, with all the manipulators out there, this is a dangerous stock to buy much of. But if you buy and sell small, this could be a bit of fun. :)
 

Sailor Dog

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Another possibility is a hedge fund has been buying shares to help push the price up. Tomorrow they will call Paul and ask him if he likes what they've done with the share price. Then they will offer him a loan for $300 million with a punitive interest rate. Take it and the hedge fund will be kind to the stock. Reject the offer and they'll short the stock to oblivion.[/QUOTE]

This is the speculative part...right? So much short power with a few 100,000 shares? I'll stick with long term derisking and appreciation! If the stock drops below $8 I will buy more instead of wasting the money to eat at Chipotle...that should cover a few hundred shares...Go Elio!!!
 
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