On October 16, 2008, in light of the large number of companies
facing delisting from NASDAQ as a result of "the current
extraordinary market conditions," NASDAQ temporarily suspended
the requirements for continued listing which mandate that listed
companies maintain a minimum bid price and market value of publicly
held shares. The suspension will be effective for a three-month
period until January 19, 2009. Companies will not be cited for new
deficiencies in these two areas during this period.
In addition, companies currently facing delisting will be frozen at
the same stage of the compliance process they were in on October
16, 2008. The NASDAQ temporary suspension applies only to the bid
price and market value requirements. Other listing requirements
will continue to be enforced. NASDAQ is contacting each affected
issuer regarding new compliance dates and the impact on each such
issuer. In its rule filing with the SEC (which has now become
effective), NASDAQ noted that there were 344 NASDAQ listed
securities trading below $1.00 on October 9, 2008 and another 300
trading between $1.00 and $2.00 on that date.
As of today no similar action has been taken by the New York Stock
Exchange.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.