Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Nasdaq Seeks to Tighten Listing Standards

edited October 6 in Other Investing
Since the start of 2024 there have been many penny-stock IPOs — often defined as IPOs priced below $5.
Through Sept. 30 of this year, there were 164 of them on U.S. exchanges including 147 on Nasdaq.
According to Jay Ritter, a University of Florida finance professor emeritus,
106 penny-stock IPOs were brought to market from 2001 to 2023.

"Last month’s initial public offerings included a Cayman Islands-incorporated provider
of shrimp-farm maintenance services in Malaysia with only four employees.
The IPO by Megan Holdings priced at $4 a share and raised $5 million."


"There has been a flood of similar microcap IPOs over the past two years,
a sign of the speculative fever gripping many parts of the investing world.
These stocks often lure in everyday investors before they tumble.
Some have produced eye-popping gains following announcements
related to a name change, cryptocurrencies or artificial intelligence."


"Nasdaq has promised to clean up its act and on Sept. 3 asked the Securities and Exchange Commission
for permission to tighten its listing standards, especially for small Chinese stocks.
This followed criticism by investors and lawmakers that such listings have become breeding grounds
for scams and manipulation."


https://marketsam.cmail20.com/t/d-e-gejykl-duklntldl-r/
Sign In or Register to comment.