More stringent delisting process for Nasdaq’s penny stocks – Proactive Investors Australia

Nasdaq has recently implemented a stricter delisting process for penny stocks. This new measure aims to protect investors and maintain the integrity of the market. Companies listed on the Nasdaq exchange that fall below the minimum bid price for a certain period of time will now face stricter scrutiny.

The Nasdaq exchange has set specific rules for penny stock companies to meet in order to avoid delisting. This includes maintaining a minimum bid price of at least $1 for their shares. If a company fails to meet this requirement, they will be given a grace period to rectify the situation. If they are unable to do so, they risk being delisted from the exchange.

This new delisting process is designed to ensure that only financially stable and viable companies remain listed on the Nasdaq exchange. By holding companies to higher standards, Nasdaq aims to protect investors from potential risks associated with investing in penny stocks.

Investors should be aware of these changes and carefully consider the risks involved in trading penny stocks on the Nasdaq exchange. It is important to conduct thorough research and due diligence before investing in any stock, especially those that are more susceptible to delisting. By staying informed and cautious, investors can protect themselves from potential losses in the volatile penny stock market.