Off the Market?
Nasdaq is bending the rules to lend a hand to falling companies, but will it help?
By Julie Monahan • May 5, 2006 Originally published Apr 4, 2002
Opinions expressed by Entrepreneur contributors are their own.
No one likes rejection, but when Nasdaq's the one giving theboot, it's more than hurt feelings. When the Nasdaq drops acompany for not maintaining stock price and market value minimums,it faces an uphill battle for survival. Most wind up on Over theCounter (OTC) bulletin boards, a riskier market that's scary toinvestors. Lenders don't like it either and often demandpayment in full from delisted businesses.
Many companies avoided exile when Nasdaq suspended delisting forthree months starting in September. The market has since proposedlooser requirements, pending SEC approval, to give small-capcompanies six months instead of three to lift prices to the $1minimum-and conditional extensions.
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