Nasdaq gains greater discretion to reject high-risk IPOs.

The Nasdaq Stock Exchange has been granted greater discretion to reject IPO applications that raise concerns about manipulation. The new rule, approved immediately by the U.S. Securities and Exchange Commission (SEC), took effect on Friday. The new rule authorizes Nasdaq to reject a company listing if: the company's place of business does not cooperate with U.S. regulators' review; the underwriters, brokers, lawyers, or auditors have been involved in questionable transactions; or there are doubts about the integrity of management or major shareholders. This move aims to address the problem of numerous small IPOs experiencing sharp price drops after listing in recent years. In the past year, half of Nasdaq IPOs raised less than $15 million, and most of those saw their share prices fall by more than 35% within a year. (Reuters)