Corp America goes WOKE!

The adage “go woke, go broke” has been turned on its head by the NASDAQ exchange. Alongside the financial requirements to have a company listed on their exchange, they’re now adding diversity requirements to the list.

The NASDAQ exchange currently lists over 3,000 companies which have a combined market value of over $17 trillion.

Companies that want to list on the exchange already have to pass through numerous hurdles. It costs a $25,000 for the application fee to be considered for a listening, after which it’ll cost between $150,000-$295,000 in entry fees if added.

Prospective companies are required to meet at least one of four standards, 1) having at least $11 million in total pre-tax earnings for the past three years without having a net loss in any of those years, 2) having at least $27.5 million of cash flow the past three without ever having negative cash flows any of those years, 3) having a market capitalization of at least $850 over the past year and revenues over $90 million, or 4) having at least $80 million in assets (with stockholders equity of at least $55 million) alongside a $160 market capitalization.

And if that wasn’t enough, they now have to face arbitrary diversity quotas that have no effect on company performance, which is the the only reason one would want to purchase a publicly listed stock to begin with.

In public companies, non-elected directors are elected by the shareholders, and thus the NASDAQ is taking a stand against their decisions with these new proposed requirements.

A review from NASDAQ earlier in the year found that over 75% of companies listed on their exchange fall short of these diversity requirements. While over 80% of companies had at least one female director, only a quarter met the second diversity requirement.

Fortunately for those companies, they can simply list on a different exchange.

Read the rest at: NASDAQ goes WOKE

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