Nasdaq Updates Penny Stock Rules to Avoid Surprise Delistings
Published Date: 12/10/2025
Notice
Summary
Nasdaq is updating its rule about stocks that stay below 10 cents for 10 business days. This change affects companies with low-priced stocks by clarifying how the minimum bid price rule applies, helping keep the market fair and orderly. The SEC quickly approved this update, so it’s set to take effect soon without any new fees or costs for traders.
Analyzed Economic Effects
4 provisions identified: 2 benefits, 2 costs, 0 mixed.
Immediate suspension for $0.10 stocks
If a Nasdaq-listed security has a closing bid price of $0.10 or less for ten consecutive business days, Nasdaq will issue a Staff Delisting Determination and immediately suspend that security from trading on Nasdaq. The company will be ineligible for any compliance period otherwise described in Nasdaq Rule 5810(c)(3)(A).
No stay of suspension during appeals
If a company fails the Low Price Requirement (closing bid ≤ $0.10 for ten consecutive business days), a timely request for Hearings Panel review will not stay the suspension of the security from trading on Nasdaq. That means the security will remain suspended on Nasdaq while the Hearings Panel reviews the Staff Delisting Determination.
Panel may grant up to 180‑day relief
Even though suspension is immediate for failure of the Low Price Requirement, a Nasdaq Hearings Panel can, where it deems appropriate, grant an exception allowing up to an additional 180 days from the Staff Delisting Determination for a company to regain compliance. A company may regain compliance by meeting the applicable minimum bid price standard (at least $1.00) for a minimum of ten consecutive business days, unless staff extends that period.
Existing hearings before operative date exempt
The proposed rule change will not apply to any company that has received a Staff Delisting Determination for failure to satisfy the Bid Price Requirement and has appeared before a Hearings Panel on or before the operative date. The operative date is 45 days after Commission approval (Commission approved on December 5, 2025).
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Key Dates
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