Nasdaq $5M Market Value Floor Approved: Immediate Delisting, No Stay
Public companies and their counsel must reassess listing compliance strategies now that Nasdaq can delist shares without an automatic trading stay.
The SEC has approved a Nasdaq rule change lowering the minimum market value of listed securities to $5 million and eliminating the automatic stay that previously paused delisting during the appeal period. Companies falling below the threshold face immediate delisting once Nasdaq staff issues a determination, removing the prior buffer that allowed continued trading while hearings were pending. The change compresses the timeline for issuers to cure deficiencies or seek review, raising the stakes of routine bid-price and market-value monitoring. In-house counsel should review internal listing-compliance dashboards, confirm board-level awareness of the new floor, and prepare expedited appeal and cure protocols. Capital-markets teams should also revisit disclosure language regarding listing standards and material noncompliance risks.