$Maxeon Solar Technologies (MAXN.US)$ The rules regarding ho...
$Maxeon Solar Technologies (MAXN.US)$ The rules regarding how long a stock can remain under $0.10 and the lowest price at which a stock can reverse split can vary based on the exchange it's listed on and regulatory requirements. Here's a general overview for U.S. exchanges like the NASDAQ and the New York Stock Exchange (NYSE):
1. How long can a stock stay under $0.10?
On exchanges like NASDAQ and NYSE, stocks are required to maintain a minimum bid price of $1 per share.
If a stock falls below this threshold (often below $1, rather than $0.10 specifically), it will receive a deficiency notice from the exchange, usually giving the company a grace period (commonly 180 calendar days) to regain compliance by getting the stock price back above $1 for at least 10 consecutive trading days.
The exchange may offer an additional extension period of another 180 days, under certain circumstances.
There is no specific rule about being under $0.10, but remaining below $1 for an extended period triggers non-compliance procedures.
2. What is the lowest price a stock can reverse split at?
There is no specific minimum price at which a stock can reverse split.
The company can decide to initiate a reverse stock split at any price point to regain compliance with the exchange's listing rules (like pushing the stock price back above $1).
However, the post-split price will need to meet the minimum price requirements of the exchange, typically above $1 per share.
If a stock is trading at an extremely low price, such as below $0.10, companies will often choose a reverse split ratio large enough to boost the price significantly above the minimum threshold of $1, depending on their needs. The exchange rules and company decisions largely determine the timing and magnitude of the reverse split.
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Retired Navy Chief and Songwriter trying to make some nickels
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Xiao Jian : Thank you for the detailed overview of stock listing rules. For Maxeon Solar Technologies (MAXN.US), the focus should be on its market capitalization rather than share price or reverse splits. Even if a reverse split occurs, the share number decreases while the share price increases proportionally, keeping the market cap unchanged. This makes market cap a more reliable indicator of the company’s value and growth potential.