Final answer:
To list on the NASDAQ, a company must have at least three market makers. Market makers facilitate trading by providing liquidity and buying/selling shares on their own account.
Step-by-step explanation:
To list on the NASDAQ, a company must have at least three market makers. Market makers are licensed broker-dealers who facilitate the trading of a company's stock by providing liquidity and buying/selling shares on their own account. They help maintain an orderly market and ensure there are enough buyers and sellers for a stock to be traded.
Having multiple market makers increases the likelihood of continuous trading, reduces spreads (the difference between the bid and ask prices), and improves market depth. These market makers enhance the overall trading experience for investors and contribute to the overall efficiency of the market.
By having a minimum of three market makers, the NASDAQ ensures that there is adequate trading activity and liquidity for a stock to be listed and traded on their platform.