How does NASDAQ measure compliance with the bid price requirement for initial listing when a company lists pursuant to an initial public offering?
NASDAQ's rules require a minimum bid price of $4 per share for initial listing on The NASDAQ Stock Market. An issuer listing pursuant to an initial public offering satisfies this requirement so long as the offering is priced at or above the minimum required price. (Updated: December 17, 2008)

How does NASDAQ measure compliance with the bid price requirement for initial listing for seasoned issuers?
NASDAQ's rules require that issuers meet a minimum bid price requirement of $4 per share for initial listing on The NASDAQ Stock Market. Seasoned issuers must meet the applicable requirement on the date NASDAQ approves their listing application and are expected to list promptly thereafter.

For an issuer traded on a non-listed market, promptly generally means within five business days of approval. However, in the case of issuers listed on another exchange, promptly generally means within fifteen business days of approval, to take account the additional time required to effect the transfer from the other market.

Note: A company that qualifies for listing only under the market value of listed securities standard must also meet the bid price requirement for 90 consecutive trading days prior to applying for listing. (Updated: December 17. 2008)

Can a seasoned issuer effect a reverse stock split to meet the minimum bid price requirement for initial listing?
A seasoned issuer may complete a reverse stock split to comply with NASDAQ's minimum bid price requirement for initial listing. Generally, when this happens, NASDAQ will require that the issuer continue to meet the bid price requirement for a minimum of five consecutive trading days after the split takes place. This means that on each of the five days the issuer must at some point during normal trading hours have a bid price which is at or above the applicable initial listing criteria.

Please note that NASDAQ may, in its discretion, also require an issuer to maintain the required minimum bid price for a period in excess of five consecutive business days, but generally no more than ten consecutive business days, before determining that the issuer has demonstrated compliance. In determining whether to require a longer waiting period, NASDAQ will consider the following four factors:

• Margin of compliance (the amount by which the price is above the minimum standard);
• Trading volume (a lack of trading volume may indicate a lack of bona fide market interest in the security at the posted bid price);
• Where applicable, the market maker montage (the number of market makers quoting at or above the minimum required bid and the size of their quotes); and,
• The trend of the stock price (is it up or down?).
• http://www.nasdaq.com/about/faqs-listing-information-questions.stm