Want to list your company in the US? How Nasdaq has become the best choice for businesses

November 6, 2024

Why are more and more companies choosing to list on the Nasdaq when going public in the United States? This question may seem straightforward, but it involves a complex array of considerations. From the liquidity of capital markets to the widespread attention of global investors, the Nasdaq has become the preferred destination for technology and innovative companies going public. This is not merely because it serves as a hub for technology companies, but also due to its unique market environment, flexible listing options, and robust regulatory framework. Today, we will delve into the five core reasons behind choosing the Nasdaq for an IPO, as well as the significant opportunities that this decision may unlock.

Nasdaq is widely recognized as the ideal listing venue for innovative technology companies. Tech giants such as Apple, Amazon, Google, and Microsoft have all listed on this platform, creating a star-studded effect that makes Nasdaq the preferred platform for global technology companies to showcase themselves. This clustering effect has significant market influence: first, it enhances Nasdaq's authoritative status in the technology industry, enabling companies to achieve higher brand visibility on the platform. Second, this technology clustering effect attracts global investors who are highly interested in the technology innovation sector and willing to provide financial support and market attention to technology companies. Therefore, for growing technology companies, being able to showcase their capabilities on the Nasdaq platform is akin to standing shoulder-to-shoulder with industry leaders. This not only significantly enhances the company's industry recognition but also enables it to gain market recognition more quickly through the platform's network effect.

Nasdaq's high liquidity provides significant support for the market performance of stocks after they are listed. Compared to other exchanges, Nasdaq has extremely high trading frequency and volume, which means that investors can buy and sell stocks quickly, and companies' stock prices are more responsive to market dynamics. This liquidity brings the following benefits:Nasdaq is not only a traditional IPO listing platform, but has also innovatively introduced multiple listing options, including direct listings and listings through SPACs (special purpose acquisition companies). These options provide companies with flexible listing paths, which are particularly attractive to companies with urgent capital needs or those seeking to list quickly.The Nasdaq has a broad and international investor base. Compared with traditional exchanges, the Nasdaq attracts capital from around the world. Listed companies not only gain the attention of US investors, but also attract investors from Asia, Europe, and other regions. The widespread participation of international investors brings the following advantages:Listing on the Nasdaq is no easy feat. Its stringent listing standards and regulatory requirements ensure that companies listed on the platform have a certain level of financial strength and operational transparency. Although the Nasdaq's listing requirements are rigorous, this regulatory framework provides a safeguard for both investors and companies. The advantages of a strict regulatory environment are as follows:

For companies, choosing to list on the Nasdaq is an opportunity to showcase themselves and gain access to global investors. 【Source: Sohu.com · Kenshuo Listing】