When a company decides to go public and list its shares on a major stock exchange like NASDAQ, it must first enter into a listing agreement with the exchange. This agreement sets out the rules and regulations that the company must follow to maintain its listing status and remain in good standing with the exchange.

The listing agreement with NASDAQ covers a range of important details, including the initial listing requirements that a company must meet to be approved for trading on the exchange. This includes meeting minimum financial standards, having a certain number of shares outstanding, and meeting certain governance requirements.

Once a company has been approved for listing, the listing agreement sets out ongoing requirements such as maintaining timely disclosure of financial information, complying with NASDAQ`s corporate governance standards, and regularly reporting on the company`s operations and financial performance.

The listing agreement also includes provisions related to compliance with regulatory requirements and NASDAQ`s own rules and regulations. This includes requirements related to insider trading, reporting of material events, and other regulatory obligations.

Importantly, the listing agreement also spells out the consequences of failing to comply with these requirements. If a company fails to meet its obligations under the agreement, NASDAQ may take action to delist the company`s shares from the exchange. Depending on the severity of the non-compliance, this could include a warning letter, suspension or termination of trading, or even expulsion from the exchange.

Overall, the listing agreement with NASDAQ is a critical document that sets out the terms and conditions of a company`s listing on the exchange. By complying with the requirements set out in the agreement, companies can maintain their listing status and benefit from the liquidity and visibility that comes with being a publicly traded company on a major stock exchange.