NASDAQ Global Select Market Composite

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 Composite. The NASDAQ Global Select Market Composite consists of 1,200 stocks that meet Nasdaq's strict financial and liquidity requirements and corporate governance standards. 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.

This stock index was created in July 2006 when the Nasdaq National Market, created in 1984, split into two tiers, the NASDAQ Global Market and the NASDAQ Global Select Market. 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 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. 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 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.

The NASDAQ had 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. Requirements 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.

Even 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.