Nasdaq has proposed a new rule requiring immediate trading suspension and delisting for companies whose market capitalization remains below $5 million for 30 consecutive days. The exchange aims to combat pump-and-dump schemes and manipulative practices in the overseas small-cap market through this stricter compliance standard.
The proposal faces opposition from U.S. domestic companies concerned that a one-size-fits-all approach could penalize legitimate businesses with volatile share prices, potentially hindering financing and operations. The SEC paused the rulemaking last month to seek further public comment. Currently, over 190 Nasdaq-listed companies have market caps at or below $5 million, with nearly half headquartered in the United States.
Nasdaq Proposes $5 Million Delisting Threshold Amid Domestic Company Pushback
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
