For Subscribers

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.

Continue reading this article — and all of our other premium content with Entrepreneur+

For just $5, you can get unlimited access to all Entrepreneur’s premium content. You’ll find:

  • Digestible insight on how to be a better entrepreneur and leader
  • Lessons for starting and growing a business from our expert network of CEOs and founders
  • Meaningful content to help you make sharper decisions
  • Business and life hacks to help you stay ahead of the curve

Related Topics

Editor's Pick

This Co-Founder Was Kicked Out of Retailers for Pitching a 'Taboo' Beauty Product. Now, Her Multi-Million-Dollar Company Sells It for More Than $20 an Ounce.
Have You Ever Obsessed Over 'What If'? According to Scientists, You Don't Actually Know What Would Have Fixed Everything.
Most People Don't Know These 2 Things Are Resume Red Flags. A Career Expert Reveals How to Work Around Them.
Business News

Massive Fire At Top Egg Farm Leaves Estimated 100,000 Hens Dead. What Does This Mean For Egg Prices?

Hillandale Farms in Bozrah, Connecticut went up in flames on Saturday in an incident that is still under investigation.

Growing a Business

Determined to Support the Black Community, These Friends Brought 'Fresh Eyes' — and Innovation — to the Food Industry

Carmen Dianne and Kara Still co-founded Prosperity Market in 2020 to battle economic instability and food insecurity in their local communities.

Social Media

You're Not Shadowbanned — Your Content Just Sucks. That's Why It's Time to Change Your Approach.

As an influencer manager, I often hear clients complain about their content or account being shadowbanned. But to be brutally honest, most of the time, it's not the algorithm that's the problem — it's the content itself.

Business News

OpenAI Rolls Out New Feature to Help Teachers Crack Down on ChatGPT Cheating — But Admit the Tool Is 'Imperfect'

Amid increasing concern regarding the use of ChatGPT by students, the tool's creator has announced a new feature that could help teachers spot it in academic context.

Life Hacks

Start Composting with This CES-Featured Device

Help reduce your carbon footprint with this handy composter.