NASDAQ would end penny stock trading

The national over-the-counter market in the U.S., known as NASDAQ, is proposing to end trading in most stocks worth less than US$1. NASDAQ lists almost 5,000 issues, including many penny stocks. The move to tighten regulations is intended to fight penny stock abuses.

Price information on penny stocks would still be available via an “OTC Bulletin Board” which would allow members to enter, update and view quotation information on the non- listed penny stocks.

Other new rules proposed include setting a minimum value of US$1 million of publicly traded shares and a minimum share price of US$3 for an initial listing.


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