The New York Stock Exchange LLC (NYSE) filed a proposal with the Securities and Exchange Commission (SEC) to amend rules about reverse stock splits, aiming to prevent companies that fall below certain price criteria from using reverse stock splits to reclaim compliance under specific circumstances. The SEC is taking extra time beyond the usual 45-day review period to evaluate this proposal and any comments received. They have extended the deadline to either approve or disapprove the changes to January 15, 2025. The proposal was initially published for public comment on October 17, 2024.
Simple Explanation
The NYSE wants to change a rule so that if a company's stock price is too low, they can't just use a trick called a "reverse stock split" to quickly fix it. The people in charge need more time to decide if this change is okay, so they've pushed back their decision until mid-January.