New Nasdaq and NYSE rules on use of reverse stock splits | Global law firm
Nasdaq and the New York Stock Exchange (NYSE) maintain certain ongoing requirements that listed companies must satisfy in order to maintain their listings, including a US$1.00 minimum share price requirement. Listed companies with securities trading at or around or below this price point often conduct reverse stock splits to maintain compliance with this minimum share price requirement. Reverse stock splits typically increase the share price of a company’s stock, at least initially, by consolidating the company’s outstanding shares at a pre-determined ratio, with stockholders maintaining their respective ownership percentages in the company, subject to elimination of any resulting fractional share entitlements.
In an…
