Search Results for keywords:"delisting"

The Securities and Exchange Commission (SEC) has approved a rule change by the New York Stock Exchange (NYSE) that restricts certain companies from using reverse stock splits to continue being listed on the exchange. This new rule targets companies that repeatedly use reverse stock splits, especially if they have done so in the past year or have a significant reverse split history in the last two years. The SEC believes this rule will help protect investors by ensuring that companies listed on the exchange are financially stable and suitable for continuing public trading. Companies can still appeal if they are delisted due to these new rules.

The Securities and Exchange Commission (SEC) has approved a new rule proposed by NYSE American LLC to strengthen its listing standards for companies that conduct reverse stock splits. According to the rule, a company will face immediate suspension and delisting if it has executed one or more reverse stock splits with a cumulative ratio of 200 shares or more to one in the past two years, or if its reverse stock split makes it fall below existing listing requirements. The SEC believes this measure will help protect investors by ensuring that companies with financial difficulties do not unduly remain on the exchange by manipulating their stock prices through reverse stock splits. Companies affected by this rule still have the opportunity to challenge delisting decisions.