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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: Wes Stevens who wrote (36062)	9/25/2001 2:54:16 PM
From: Softechie	Respond to of 37746

Nasdaq mulls waiver of $1 delisting rule NEW YORK, Sept 25 (Reuters) - The Nasdaq stock market is considering changing its regulations so that companies whose share price has fallen below $1 may not be delisted, sources close to the situation told Reuters on Tuesday. There are around 669 Nasdaq companies trading now below $1 and a number of companies have been delisted this year as the market has fallen sharply. Nasdaq sends a company a notice telling it to shape up after it trades for less than $1 a share for 30 days in a row. If a company does not get its closing share price back above the $1 level for 10 trading days in a row during the next 90 days, Nasdaq sends it a delisting notice, which it can appeal. An executive at one well-known technology company, whose shares are trading below the key $1 level and which asked not to be identified, told Reuters they had been informed by Nasdaq officials that it would not enforce its delisting rule, even though the company's shares had traded below $1 for 30 days. Another technology company, whose stock also has traded below $1 for more than 30 days, said Nasdaq officials had told it that they were reviewing the delisting regulations. One chief executive of a leading share dealing firm told Reuters he had advised Nasdaq it needed to change its delisting rules. ``The bottom line is that test alone ... is not adequate,'' he said. ``There should be a few tests, the $1 rule doesn't really make any sense.'' ``The reality is there's a lot of companies that are $50 million to $250 million in market capitalization that certainly have a lot of shareholders and a lot of trading value and a lot of net capital ... and would qualify to stay on markets,'' the CEO said. ``But because we have this hard-and-fast $1 rule they're subject to delisting.'' A Nasdaq spokesman said it was ``closely monitoring these issues,'' but it was too early to make any statements.