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Not sure if thats actually required, but for sure it makes it easier for SEC to approve a security if it has been already given greenlight by NASDAQ. I would be
by spurdoman77 7y ago
Not sure if thats actually required, but for sure it makes it easier for SEC to approve a security if it has been already given greenlight by NASDAQ. I would believe the law doesnt dictate marketplaces but in practice the marketplaces enforce more regulation than the actual regulator.
- H8crilA 7y agoIt's the other way around - once SEC blesses something then NASDAQ or NYSE or any other exchange can list it. NASDAQ is a private, for-profit corporation, not a regulator. I doubt they frequently reject listings, at least in the short term it's in their interest to have as many listings as possible. In addition - NASDAQ, like all other exchanges, is subject to its own regulatory oversight from the SEC. With all of that please remember that playing by the rules is not a pure loss. It opens you up to professional/institutional investors. These guys know and trust what the SEC says, far more so than what any random company says. Also, remember why was the SEC created in the first place - it was after the 1929 crash (which was far more severe than the 2008 crash, see for yourself on a log() chart) and after the great depression that followed.