NEW YORK – The Nasdaq Stock Market on Thursday said it suspended its rules to allow companies with share prices of less than $1 to remain on the No. 2 U.S. stock market in response to the Sept. 11 air attacks on the United States.
The expected move, which was approved by Nasdaq's board on Wednesday, will suspend the $1 requirement until Jan. 2, Nasdaq said in a statement. The stock market, which is preparing to issue its shares to the public, said it will evaluate whether to make the change permanent.
Around 669 Nasdaq companies, about 15 percent of Nasdaq's list, now trade below the $1 level. Many of Nasdaq's companies had already been hurting since the technology bubble burst in 2000 but the market's composite index has fallen even further following the attacks.
The now-suspended rules, which a securities lawyer says had not been enforced on some companies he represents, call for Nasdaq to send a company a warning notice if its shares trade for less than $1 a share for 30 straight days. If a company did not get its closing share price back above the $1 level for 10 successive trading days during the next 90 days, Nasdaq would send it a delisting notice, which could be appealed.