Nasdaq Delisting: What You Need to Know
Nasdaq is one of the largest stock exchanges in the world, and it is home to some of the most well-known companies in the world. However, even companies that are listed on Nasdaq can be delisted if they fail to meet the exchange’s listing standards.
There are a number of reasons why a company might be delisted from Nasdaq. Some of the most common reasons include:
- Failure to meet minimum bid price: The company’s stock must trade at a minimum bid price of $1.00 per share.
- Failure to meet minimum market capitalization: The company’s market capitalization must be at least $2 million.
- Failure to meet minimum number of shares outstanding: The company must have at least 300,000 shares outstanding.
- Failure to meet minimum revenue: The company must have at least $1 million in revenue for the most recent fiscal year.
- Failure to maintain an independent audit committee: The company must have an independent audit committee.
- Failure to file regular reports with the SEC: The company must file regular reports with the SEC.
- Failure to meet corporate governance requirements: The company must meet certain corporate governance requirements.
If a company is delisted from Nasdaq, it can still trade on other exchanges, but it will likely have a much lower market capitalization and be less visible to investors.
There are a few things that companies can do to avoid being delisted from Nasdaq:
- Make sure that they meet the exchange’s listing standards
- If they do not meet the standards, take steps to correct the problem
- Communicate with Nasdaq if they are having problems meeting the standards
- If they are delisted, try to get listed on another exchange
- Contact Carmel, Milazzo & Feil to guide you through the process
If you are an investor in a company that is listed on Nasdaq, it is important to be aware of the risks of delisting. If a company is delisted, it could have a significant impact on the value of your investment.