NYSE Gives Battered Companies a Breather

According to New York Stock Exchange rules, if a company's market capitalization -- its share price multiplied by its number of outstanding shares -- drops below $25 million for 30 consecutive days, its stock must be delisted from the exchange, a potentially crippling blow for any troubled company.

Today, the NYSE said it will give battered companies a break: It is lowering the delisting threshold from $25 million to $15 million through April 22.

The move is meant to reflect the wild market swings of the past several months and the fact that such swings -- which can drive down a company's value in a matter of hours and kick it off the exchange -- are sometimes not the fault of the company itself, which might still be considered viable.

“This temporary lowering of the 30 trading-day average market capitalization requirement will enable companies of suitable size and quality to remain listed during current difficult market conditions,” Richard G. Ketchum, chief executive of NYSE Regulation Inc., said in a statement. "All of the NYSE’s other continued listing criteria will continue to apply during this period.”

Here's the entire release.

-- Frank Ahrens
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