NASDAQ decides to clean up and proposes stricter enforcement of delisting procedures for "penny stocks"

NASDAQ Stock Exchange has proposed to amend its rules regarding low-priced stocks, strengthen the delisting process to protect investor interests. Under the new rules, if a company's stock price remains below $1 for 360 consecutive trading days, the stock will be suspended from trading on NASDAQ and moved to the OTC market. Additionally, if a company artificially inflates its stock price through reverse stock splits but still falls below $1 within a year, NASDAQ will immediately issue a delisting notice. NASDAQ believes that companies engaging in multiple reverse stock splits may have financial problems or operational difficulties, making them unsuitable for trading on their exchange. These amendments also require approval from the U.S. Securities and Exchange Commission