The New York Stock Exchange relaxed listing requirements at the world’s largest equity market, reducing the minimum value for companies to $15 million following the worst year for US stocks since the Great Depression.
The reprieve, which lowered the requirement from $25 million, will last through April 22 for companies listed on the Big Board, the exchange said yesterday. About 12 companies will be immediately helped by the new rule, NYSE Regulation spokesman Scott Peterson said.
“The proposed modified requirement will enable these companies to remain listed in the current difficult market conditions with the prospect of a future recovery in their stock prices,” New York-based NYSE Euronext said in a filing with the Securities and Exchange Commission.
The S&P 500 index has fallen 7.3 percent this year. It retreated 38 percent in 2008, leading the NYSE to delist 29 companies for failing to meet the market-value threshold.
The Nasdaq Stock Market has suspended some listing rules since October. Nasdaq waived until April 20 its requirements that companies maintain a share price of more than $1 and a market value of at least $5 million.
The NYSE will still initiate delisting procedures for companies whose share price is below $1 for a month.