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Message: NYSE considers relaxing its one-dollar rule

NYSE considers relaxing its one-dollar rule

posted on Feb 24, 2009 11:01AM

Hopeful, unsure of other qualifications- anything to get off of OTC, 2010?

"With many major companies trading in penny-stock territory, the New York Stock Exchange is considering relaxing a rule that requires shares to trade above a dollar.

And the NYSE has already lowered the minimum market capitalization for listed stocks. On Jan. 23, the exchange temporarily decreased the threshold to $15 million from $25 million. The minimum market cap was raised to $25 million from $15 million in 2004.

Generally, the market cap threshold ends up disqualifying more companies than the more flexible stock price rule. Last year, the NYSE delisted 54 companies -- 29 for a market cap that was too low, and 5 for what the exchange describes as an "abnormally low share price."

Roughly 65 companies are currently listed on the NYSE Web site as "noncompliant with NYSE quantitative continued listing standards." That's more than 3 percent of the approximately 1,950 companies listed on the exchange, and a longer list than usual, according to the NYSE."

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