The New York Stock Exchange (NYSE) has extended its waiver from certain shareholder approval requirements for stock issuances until March 31, 2021, due to financial challenges posed by the COVID-19 pandemic. This waiver allows companies to raise funds through private placements without needing shareholder approval, as long as the transactions meet specific conditions such as minimum price requirements and independent audit committee approval. The NYSE's move aligns with similar rules already used by the NASDAQ, offering companies more flexibility during these difficult economic times. However, this waiver doesn't apply if the funds raised are intended for acquisitions.
Simple Explanation
The New York Stock Exchange (NYSE) is letting companies collect money from certain investors more easily without asking everyone who owns part of the company for approval until March 31, 2021, because of the money problems caused by the pandemic. This helps companies get money quicker, as long as they follow some rules, but isn't allowed if the money is for buying other businesses.