Tuesday 24 February 2009

Shares for less than a dollar

This is a telling indicator about how bad things are in equity markets. The NYSE is about to relax its requirement that shares must trade for at least a dollar.

Feb. 24 (Bloomberg) -- NYSE Euronext may temporarily ease a requirement for New York Stock Exchange companies to maintain a share price of more than a $1 to prevent a wave of delistings after the Standard & Poor’s 500 Index fell to a 12-year low.

“This is something we are considering given the current market conditions,” Richard Adamonis, a spokesman for NYSE Euronext, said in an interview today.

The Big Board already suspended until April the minimum market value that a company must have to keep its listing. The Nasdaq Stock Market, NYSE’s New York-based rival, has suspended some listing rules since October. Nasdaq waived until April 20 its requirements that companies maintain a share price of more than $1 and a market value of at least $5 million.

3 comments:

Anonymous said...

Soon we will see the return of penny shares on Wall street.

Anonymous said...

Soon we will see the return of penny shares on Wall street.

Sackerson said...

... or the cent of victory?