Does Nasdaq list and trade Baby Bonds?

2 min read | September 13, 2024 05:58 PM AEST | By Team Kalkine Media

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Does Nasdaq list and trade Baby Bonds? — Image source: shutterstock

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Nasdaq offers a platform for various types of securities, including Baby Bonds. These securities are characterized by their issuance in smaller denominations compared to traditional non-convertible corporate bonds, typically around $25. They are assigned an equity CUSIP by the CUSIP Bureau and are traded "flat." This means that transactions do not include any accrued and unpaid interest beyond the trading price, resembling the trading behavior of preferred stocks.

Listing and Trading of Baby Bonds

Baby Bonds are listed on the Nasdaq Global Market under Nasdaq Rule 5730. This rule outlines specific requirements for a Baby Bond to be eligible for listing:

1. Issuer Requirements: The issuer of a Baby Bond must be listed on one of the following:

Nasdaq Global Select Market

Nasdaq Global Market

New York Stock Exchange (NYSE) Alternatively, the issuer can be an affiliate of a company listed on one of these exchanges.

2. Financial Criteria: The issuer must meet certain financial standards, including asset, net income, and equity tests.

3. Market Value: The Baby Bond itself must have a minimum aggregate market value or principal amount of at least $4 million.

These requirements ensure that the Baby Bonds listed on Nasdaq maintain a high standard of financial stability and market presence.

Additional Information

For further details or if there are questions about listing Baby Bonds on Nasdaq, the Listing Qualifications Department is available for contact at (301) 978-8008.

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