what is the nasdaq global select market composite 
the nasdaq global select market composite is a market capitalization weighted index made up of u s based and international stocks that represent the nasdaq global select market as of august 2020 the nasdaq global select market composite consisted of more than 1 400 stocks that meet nasdaq s strict financial and liquidity requirements and corporate governance standards 1 the global market select composite is more exclusive than the global market composite every october the nasdaq listing qualifications department reviews the global market composite to determine if any of its stocks have become eligible for listing on the global select market understanding the nasdaq global select market compositethis stock index was created in july 2006 when the nasdaq national market split into two tiers the nasdaq global market and the nasdaq global select market 3 the change was nominal as it did not affect listing standards but rather was meant to reflect the global scope of the index and the companies listed on it the select index encompasses about a third of the largest companies listed on the nasdaq the companies that comprise each tier of the nasdaq are placed according to their market capitalization the nasdaq global select market tier is the most selective tier to qualify for this large cap category a company must meet the strictest financial requirements a company s stock is reviewed annually to ensure it continues to be listed under the proper tier 2 if a stock meets or exceeds its current market cap requirements under its current tier it could be promoted to the larger market capitalization tier if however a company s stock does not measure up to the market cap requirements of its current tier it can be demoted to a smaller market capitalization tier nasdaq global select market vs other nasdaq tiersthe nasdaq has three distinct tiers the nasdaq global select market the nasdaq global market and the nasdaq capital market potential nasdaq companies must satisfy a variety of financial liquidity and corporate governance requirements to be approved for listing on any market tier 2requirements for inclusion in the nasdaq global select market are the most stringent of the three requirements for the nasdaq global market are more stringent than those for the nasdaq capital market it s important to note that corporate governance requirements are the same across all nasdaq market tiers 2even though a company s securities qualify for initial inclusion nasdaq may deny initial listing or apply additional conditions if necessary to protect investors and the public interest 2requirements for nasdaq global select marketa company interested in pursuing a stock market listing on the nasdaq must complete and submit an application in general it will take nasdaq four to six weeks to process a new listing application the nasdaq listing qualifications staff is responsible for conducting a preliminary review of the application and issuing the company a comment letter the company will have a specified time period to resolve or address any issues raised in the comment letter if all issues are resolved satisfactorily nasdaq will complete their review and the company will be approved for listing 2 as mentioned the listing requirements for nasdaq global select are more stringent than the other tiers to meet the financial requirements a company will need to meet all the criteria of at least one of these four standards established by nasdaq additionally the company must meet liquidity requirements that vary depending on whether the company is an initial public offering ipo a spinoff or already currently trading common stock 2 