Nasdaq has recently made changes to its delisting rules for penny stocks. This move is aimed at tightening the regulations surrounding these low-priced securities.
The new rules require companies listed on Nasdaq to maintain a minimum bid price of at least $1 per share for a period of 30 consecutive trading days. If a company fails to meet this requirement, it will be given a grace period of 180 calendar days to regain compliance.
If a company is unable to meet the minimum bid price requirement within the grace period, Nasdaq may initiate the delisting process. This means that the company’s stock will no longer be traded on the exchange.
These changes are part of Nasdaq’s efforts to protect investors and maintain the integrity of its marketplace. By imposing stricter rules on penny stocks, Nasdaq aims to reduce the risks associated with investing in these volatile securities.
Overall, these new delisting rules for penny stocks serve as a reminder to companies listed on Nasdaq to maintain compliance with the exchange’s regulations in order to avoid potential delisting. Investors should also be cautious when trading penny stocks, as they can be highly speculative and risky investments.