For perspective, Initial Minimum Bid Price for Stock on the NASDAQ: The stock must have a minimum initial bid price of $5.00 and must later remain at or above $1.00. This requirement serves as a safeguard against certain market activities associated with low-priced securities, and protects the credibility of the NASDAQ market.
Even if a stock cannot hold at a $1.00, it receives a warning from NASDAQ, at which time, it can reserve split, buy back or do any number of self arbitrage tactics to reinflate the share price to keep the listing. I believe the warning period is 3-6 months under $1.00 to be delisted. At which time, it is resisted to the Over The Counter market, or what is commonly referred to as the Pink Sheets.
The bigger issue with share price in the USA is that most mutual funds, sovereign funds, and private pension funds (those being mainly Union or Guild pooled investment entities) write in to their investing by-laws to not invest in stocks trading under $5.00 a share. Any USA listed stock trading under $5.00 a share is considered a Penny Stock. Also, banks will not allow these entities to borrow or leverage shares under $5.00, for fear that the asset is illiquid, and not considered as legitimate collateral to borrow against.
For perspective, Initial Minimum Bid Price for Stock on the...
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Last
$6.81 |
Change
-0.110(1.59%) |
Mkt cap ! $6.365B | |||
| Open | High | Low | Value | Volume |
| $6.92 | $6.94 | $6.81 | $23.24M | 3.397M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 140 | $6.81 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $6.82 | 58478 | 3 |
View Market Depth
| Last trade - 16.10pm 14/05/2024 (20 minute delay) ? |
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Last
$6.83 |
Change
-0.110 ( 1.47 %) |
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| Open | High | Low | Volume | ||
| $6.92 | $6.92 | $6.82 | 1349759 | ||
| Last updated 15.59pm 14/05/2024 ? | |||||
| LYC (ASX) Chart |