Nasdaq’s Stricter Delisting Rules for Penny Stocks

Understanding Nasdaq's Proposed Changes to Penny Stock Rules

The Nasdaq stock exchange is considering implementing more stringent rules for delisting penny stocks, which are stocks priced at less than $1 per share. These changes aim to fast-track the removal of non-compliant companies from its exchanges. Nasdaq requires listed companies to maintain a closing share price above $1. When a stock remains below this threshold for 30 consecutive trading days, it is flagged as non-compliant. The company then has 180 days to correct this issue by raising its stock price.