To keep the lists accurate, we review each segment at year-end and re-set the segments based on average market capitalization in November the year before. The change in the segments is updated on the first trading day in January each year.
Companies with a market cap value of more than 50 percent of the minimum or maximum threshold of a segment will be transferred into a new segment with immediate effect. Companies with a market cap value of less than 50 percent of the minimum or maximum segment threshold will have a transitional period until the next forthcoming review (or at least 12 months), and thus be subject to one more review before transferring into a new segment.
Through these measures, Nasdaq offers market cap classification structure in line with international standards while facilitating a model built to withstand strong market fluctuations and thus support financial stability for our listed companies.
