Removing $1/share rule may keep US chems on stock exchange

Currently, the NYSE can de-list companies if their stock prices trade below $1/share for 30 consecutive trading days. The NYSE wants to suspend the requirement until 30 June.

Already, Georgia Gulf and Chemtura are trading below $1. Both companies are in danger of being de-listed from the NYSE.

Several others are trading below $10/share.

With the looser requirement, the NYSE intends to help companies deal with extreme market volatility and steep stock declines, the exchange said in a government filing. Such volatility threatens the normal operations of securities markets.

Potentially, investors could doubt the viability of companies with drastically lower stock prices, the exchange said.

Normally, such rule changes would require a 30-day delay by US regulators,  the NYSE said. However, the exchange has asked the government to waive the waiting period.

In addition to suspending the $1/share rule, the exchange wants to extend its lower requirement for global capitalisation, it said. That lower requirement - $15m instead of the normal $25m - is set to expire on 22 April. The NYSE wants to move the expiration to 30 June.

The following table lists chemical companies with stock prices below $10.

($1 = €0.78)

Paul Hodges studies key influencers shaping the chemical industry in Chemicals and the Economy
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