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On July 1, some investors began unloading their holdings on the Bulletin Board, an over-the-counter market generally reserved for weakly capitalized companies that do not meet listing requirements of Nasdaq or the major stock exchanges.
In the first two months of this year, 63 companies were dropped from Nasdaq for failing to meet listing requirements.
Investors need to act fast: stubs are often delisted by stock exchanges because the limited number of shares don't meet listing requirements.
Since the Net stock peak last March, NASDAQ has delisted just 27 Internet stocks for bankruptcy or failure to meet listing requirements.
Many companies on the Bulletin Board are there after having been bounced from the major exchanges for failing to meet listing requirements: for falling below minimum market capitalization or for neglecting to mail out proxies.
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The Federal Housing Finance Agency, which has overseen the firms since 2008, ordered the moves as a pre-emptive step after the exchange told Fannie Mae that its shares no longer met listing standards, said Edward J. DeMarco, the agency's acting director.
In early January, I met List for lunch in the warehouse district of New Orleans during a conference of academic economists.
Some of the firms listing in London and Hong Kong were unable or unwilling to meet the listing requirements of American exchanges.
Similarly, if a Regulation A+ company were to meet the listing standards of an exchange such as NASDAQ, it may also list its shares.
REUTERS Sino-Forest to Lose its Listing | The Toronto Stock Exchange said the Sino-Forest Corporation had failed to file financial statements on time and meet other listing requirements, The Wall Street Journal reports.
Investors are also expecting the company to issue new shares to meet FTSE listing requirements.
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CEO of Professional Science Editing for Scientists @ prosciediting.com