The U.S. SEC approves new rules: companies with a market cap below $5 million will be delisted faster

robot
Abstract generation in progress
Golden Finance reported that on July 23, Nasdaq will amend its rules to delist underperforming companies more quickly; previously, regulators had been closely watching the sharp market volatility in micro-cap stock trading and allegations of manipulation. Under a plan approved by the U.S. Securities and Exchange Commission (SEC) on Wednesday, if the securities market capitalization of a Nasdaq-listed company stays below $5 million for 30 consecutive days, it will face immediate suspension and delisting penalties, with limited chances to appeal. This stricter standard is expected to affect the micro-cap and “penny stock” markets; regulators had previously issued warnings about “pump-and-dump” fraud that uses high-tech methods. In the SEC’s approval filing, the agency said that because low-priced, low-market-cap stocks require less manipulation capital, they are more susceptible to market manipulation or severe volatility. (Jin Ten)
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned