How many market makers must be present for a stock to be listed on NASDAQ?

For a stock to be listed on NASDAQ, it must have a minimum of three market makers. Market makers play a critical role in ensuring liquidity in the market by providing quotes and being ready to buy and sell shares. Having at least three market makers helps to facilitate trading activity and enhance price stability for the stock, which benefits investors.

The requirement for three market makers indicates to potential investors that there will be enough competition among them, contributing to more efficient price discovery and increased trading volumes. This standard is essential because it ensures that stocks are not only traded efficiently but also that there is a diverse set of participants in the market, which reduces the risk associated with trading low-volume stocks.

The choice of three is a reflection of the regulatory standards set by NASDAQ to maintain a robust trading environment and reassure investors of the stock's market activity and reliability.