Dec

22

‘Penny Stock Rule’ Suspension Has Been Extended

Filed Under Other 

Nasdaq OMX Group Inc. (NDAQ) has asked the Securities and Exchange Commission to extend its suspension of rules requiring a minimum $1 closing bid price and a minimum market value for shares listed on its exchange.

The SEC approved the suspension of Nasdaq’s “penny stock” requirement, which requires shares of listed companies to stay above $1, in October, saying companies were in temporary need of relief.

Typically, companies listed on Nasdaq are required to maintain a minimum closing bid price of $1 a share. If a company trades below the $1 closing price for 30 consecutive business days, Nasdaq will then allow the company 180 calendar days to regain compliance and can permit an additional 180 days depending on the company’s exact listing standards. If the company isn’t able to boost its share price in that period, it faces delisting from the exchange.

Click here to read more.

Quote of the Day:
Money is like love; it kills slowly and painfully the one who withholds it, and enlivens the other who turns it on his fellow man. – Kahlil Gibran

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3 Responses to “‘Penny Stock Rule’ Suspension Has Been Extended”

  1. csquared on November 23rd, 2010 10:37 am

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  2. Daniel Harris on July 29th, 2011 1:47 am

    A penny stock is that trades at a relatively low price and market capitalization, usually outside of the major market exchanges. The penny stock is a very small company with highly exploratory shares.

  3. Top Stocks on September 30th, 2011 3:41 am

    Good thoughts & fantastic writing style. Thanks….

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