Wall Street Journal: Hundreds of Stocks Have Fallen Below $1. They’re Still Listed on Nasdaq.
Full article: https://www.wsj.com/finance/stocks/hundreds-of-stocks-have-fallen-below-1-theyre-still-listed-on-nasdaq-c8e36abf
Hundreds of stocks have broken the buck this year, following a slump in the once-hot market for buzzy startups seeking rapid growth.
As of Friday, 557 stocks listed on U.S. exchanges were trading below $1 a share, up from fewer than a dozen in early 2021, according to Dow Jones Market Data. The majority of these stocks—464 of them—are listed on the Nasdaq Stock Market, whose rules require companies to maintain a minimum share price of $1 or risk being delisted.
Investor-protection advocates say many of these sub-$1 stocks belong to risky small companies that should be on the over-the-counter market, the traditional home of “penny stocks” not ready for the prime time of Nasdaq or the New York Stock Exchange.
Excerpt: Reverse stock splits have surged as struggling companies seek to boost their share price above $1. There have been 255 reverse splits so far in 2023, up from 159 last year, according to data provider Wall Street Horizon.