Is it ever possible that a stock that is consecutively trading above $1 to get delisted?
If so, how, and for what reasons? And if it happens, how often does it happen?
-
NYSE to Delist Chinese Telco Giants on U.S. Executive Order - January 1, 2021 – base64 Jan 1 at 10:25
Add a comment
|
The NYSE has a number of requirements that must be met to remain listed. The following are considerations for delisting.
- the number of stockholders falls below 400
- the number of stockholders falls below 1,200 when monthly trading volume is under 100,000 shares
- if there are less than 600,000 publicly held shares
- capitalization of less than $15 million over a 30-day trading period
- global capitalization is less than $50 million over a 30-day period
- share price falls below $1 for 30 consecutive trading days
However, in April, the NYSE temporarily suspended its listing standards requiring in response to the coronavirus pandemic. The $15 and $50 million Standards were extended as much as 18 months. The Dollar Standard had several extension categories but 1/01/2021 was the maximum limit, unless they have crafted another extension since April.
Before the pandemic and the extensions, the NYSE considered delisting if any of the aforementioned listing requirements were not met.
-
So basically if a stock is consecutively trading over $1 AND it has a high enough average volume, let's say a daily average volume of at least 100k, then it's impossible to be delisted? – frosty Jan 1 at 19:05
