Nasdaq Examines Delisting Regulations - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Nasdaq Examines Delisting Regulations

Will Nasdaq find itself trading penny stocks? It could have more definitive information about how it will handle future delistings within a week.

The economic fallout of the Sept. 11 attacks continues as the Nasdaq exchange Wednesday revealed it is taking a closer look at its regulations regarding the delisting of companies whose share price drops below $1. The tech-heavy exchange has seen many stock prices fall severely since it reopened after a four-day hiatus following the attacks.

A Nasdaq spokesman says the exchange regularly revisits its listing requirements to ensure fairness, and that it could have more definitive information about how it will handle future delistings within a week.

Currently, Nasdaq warns companies that they could be delisted once their stock has been trading below $1 for 30 consecutive days. Companies receive a reprieve if their stock price recovers and remains more than $1 for 10 consecutive days. After receiving notification, companies whose stock price remains below $1 still can fend off delisting by demonstrating that they're taking steps to fuel the value of their shares. Such steps could include anything from providing details of revenue-generation initiatives to undertaking reverse stock splits. Failed online grocer Webvan attempted the latter before it shut its doors in July.

Nasdaq is not alone in its efforts to bolster the markets. Federal Reserve chairman Alan Greenspan cut interest rates once trading resumed after the attacks, and the Securities and Exchange Commission modified its regulations governing stock buyback plans to allow companies to reacquire shares and thus prevent their value from tumbling further.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
News
IT Spending Forecast: Unfortunately, It's Going to Hurt
Jessica Davis, Senior Editor, Enterprise Apps,  5/15/2020
Commentary
Helping Developers and Enterprises Answer the Skills Dilemma
Joao-Pierre S. Ruth, Senior Writer,  5/19/2020
Slideshows
Top 10 Programming Languages in Demand Right Now
Cynthia Harvey, Freelance Journalist, InformationWeek,  4/28/2020
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll