NYSE Listing Rules to Remain Relaxed
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The New York Stock Exchange has some fairly stringent rules for being listed. However, NYSE Euronext has made it a priority to suspend some of the rules in order to help companies during this time of economic upheaval and stock market volatility. Back in April, when the rules were supposed to be reinstated, the exchange decided to delay the move. Now, as the bear market continues, NYSE Euronext is considering extending the relaxed rules for a little while longer. BloggingStocks describes the rules that have been extended, and the intended effects:
The two rules that have been relaxed are the maintenance of a share price of at least $1 and a market cap of at least $15 million. The return of both measures was delayed back in April. Currently, 31 companies on the NYSE are at risk…
The NYSE’s decision to extend the relaxed conditions should give several companies the elbow room they need to recover. Removing the safety net — and the subsequent delisting — would doubtless impede both their individual recoveries and that of the broader market.
Today, Wall Street seems to be responding positively to this news. Indeed, for the first time in days, the bulls are firmly in control of the stock market. The Dow is up almost 150 points right now, heading into the final two hours of the session. Also helping the stock market is the announcement from the Federal Reserve that it would extend its current credit programs until next February. It is clear that the Fed plans to remain involved in propping up Wall Street companies until they are back on their feet.
Indeed, the listing rules suspension, along with the Fed announcement, are overcoming the dour unemployment data, as well as concerns about a contracting GDP.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.
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June 25th, 2009 at 12:05 pm
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