Lates News

Nasdaq will amend its rules to more quickly delist poorly performing companies; this comes as regulatory agencies closely monitor the sharp market fluctuations and manipulation accusations in microcap stock trading. Under a plan approved by the US Securities and Exchange Commission (SEC) on Wednesday, if the market value of Nasdaq-listed companies' securities remains below $5 million for 30 consecutive days, they will face immediate suspension and delisting with limited appeal opportunities. This stricter standard is expected to impact the microcap and penny stock markets; regulatory agencies have previously warned against "Pump-and-Dump" fraud carried out using high-tech methods. The SEC stated in the approval document that low-price, low-market value stocks require less manipulation capital, making them more susceptible to market manipulation or severe fluctuations.