nyse -> nasdaq: ?

March 25, 2009 9:55 AM

From the NYSE to NASDAQ: good, bad, indifferent?

I work for an entertainment company that is publicly traded. We had a strong 2008, then our stock got crushed like everyone else. Recently the company decided to move our stock trading from the New York Stock Exchange to the NASDAQ. Is that a bad sign? We make movies, not tech...

posted by anonymous to Work & Money (3 answers total)

Investopedia discusses the differences between the two markets. NYSE still uses floor traders for some trades, whereas NASDAQ is entirely electronic.

Both had listing requirements of a certain market cap and share price ($1) that have been suspended in the wake of fail. It's only when your stock moves to the Pink sheets that you'll be able to surmise anything from the trading move. (NASDAQ may be "cheaper" to list on, or may have slightly less stringent listing requirements, but I don't know if they're particularly significant.)

What did the company list as their reason for the switch?
posted by disillusioned at 10:09 AM on March 25, 2009

A move like that might be perceived as concerning for a large-cap, "blue chip" type of company, but it is probably largely irrelevant for a presumably small or mid-cap company like yours and was probably done for a cost-savings or some technical compliance reasons. Nasdaq is considered a highly reputable and globally accepted exchange, just like the NYSE, and many popular non-tech companies list on it all the time.
posted by jameslavelle3 at 10:15 AM on March 25, 2009 [1 favorite]

No cause for concern from your standpoint.
posted by stratastar at 10:52 AM on March 25, 2009