22 Jan 2025
📉NYSE Proposes Enhanced Compliance for Reverse Stock Splits
Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing of Amendment No. 2 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 2, To Amend Section 802.01C of the NYSE Listed Company Manual (Price Criteria for Capital or Common Stock) To Restrict the Use of Reverse Stock Splits in Certain Circumstances
Agencies
- Securities and Exchange Commission
Business Impact
$$ - Med
The proposed rule changes impact listed companies by tightening compliance standards against reverse stock splits, leading to potential delisting for those that fail to meet price requirements. This alters financial strategies and compliance approaches for executives, highlighting the need for vigilance against prolonged low stock prices.