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NASDAQ granted greater discretion to reject high-risk IPOs
Summary: In breaking news, the NASDAQ stock exchange has been granted greater discretion to reject IPO applications with manipulation risks. This new rule, approved immediately by the U.S. Securities and Exchange Commission (SEC) on Friday, authorizes NASDAQ to reject companies for listing if their business location does not cooperate with U.S. regulatory reviews; if underwriters, brokers, ...
In breaking news, the NASDAQ stock exchange has been granted greater discretion to reject IPO applications with manipulation risks. This new rule, approved immediately by the U.S. Securities and Exchange Commission (SEC) on Friday, authorizes NASDAQ to reject companies for listing if their business location does not cooperate with U.S. regulatory reviews; if underwriters, brokers, lawyers, or auditors have been involved in questionable transactions; or if there are doubts about the integrity of management or major shareholders. This move aims to address the issue of a large number of small IPOs experiencing significant price drops after going public in recent years. In the past year, half of NASDAQ's IPO fundraising amounts were less than $15 million, with most stock prices dropping over 35% within a year. (Reuters)
