posted
when i first started i read that Nasdaq don't let trading in stocks less than 5$ , but i noticed that alot of stocks r even under 50 cents .... can anybody explain this to me pls?
and does this means that these stocks got notice to be delisted if they won't go back over 5$?
posted
Pretty sure it's $1, not $5. I seem to remember a few stocks that dipped under 1 and then got a warning notice (after some time). Then the warning notice was good for 180 days maybe...might have been less. They had to stay above $1 for 10 days straight. There's plenty of stocks under 5. Conexant, Nortel, blah blah. Dont think theey are in any danger of being delisted. Maybe one of the requirements to GET ON the Nadaq is 5 bucks, and 1 buck to stay on. I havent dug deep enough to find out.
My company's bid price has fallen below the minimum requirement. Will we be delisted? Companies listed on NASDAQ are required to maintain a minimum closing bid price of $1.00 per share. If a company trades for 30 consecutive business days below the applicable minimum closing bid price requirement, NASDAQ will send a deficiency notice to the company, advising that it has been afforded a "compliance period" of 180 calendar days to regain compliance with the applicable requirements.
Thereafter, Capital Market companies can receive an additional 180-day compliance period if they meet all initial inclusion requrements for the Capital Market, except for the bid price requirement. If a National Market company is unable to comply with the bid price requirement prior to the expiration of its 180-day compliance period, it may transfer to The NASDAQ Capital Market, so as to take advantage of the additonal compliance period offered on that market, provided it meets all requirements for initial listing on The NASDAQ Capital Market, except for the bid price requirement. If the company does not demonstrate compliance within the compliance period, it will be issued a delisting letter, which it may appeat at that time. See Hearings Process for additional information.
How does a company regain compliance with the bid price requirement? To demonstrate compliance with the bid price requirement, a company must maintain compliance for a minimum of 10 consecutive business days.
Although an automated computer system tracks each company's bid price on a daily basis, it is suggested that the company contact its Listing Qualifications analyst when it believes compliance has been achieved. NASDAQ will provide all compliance determinations, in writing, to the company.
Under certain circumstances, to ensure that the company can sustain long-term compliance, NASDAQ may require the closing bid price to equal or to exceed the $1.00 minimum bid price requirement for more than 10 consecutive business days before determining that a company complies. In determining whether to look beyond the 10 days, NASDAQ will consider, but is not limited to, the following factors:
* Margin of compliance (the amount by which the price is above the $1.00 minimum standard); * Trading volume (a lack of trading volume may indicate a lack of bona fide market interest in the security at the posted bid price); * The market maker montage (e.g., if only one of eight market makers is quoting at or above the minimum bid price and the quote is only for 100 shares, then added scrutiny may be appropriate); and * The trend of the stock price (is it up or down?).
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posted
iiiqqqeg, I posted a stock you should get familiar with, lots of info in the SEC reports to teach you about a company when it starts to go Haywire!
The stock is CLGY I suggest you paper trade it and see how you wind up..
These cheap nasdaqs are NO CAKEWALK! They can really be tuff to figure out.
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posted
thx alot Dustoff .... i just noticed today about 3 cheap nasdaq stocks broke out for no reason i mean no news or nothing ... is there a way to monitor the ones that r breaking out during the day itself?
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