NASDAQ Amends Listing Rule 5505 To Mandate Strict $4.00 Floor Initial Listing Price
On October 7, 2026, the SEC published notice of immediate effectiveness of Nasdaq’s proposed modified Listing Rule 5505. The amendment eliminates the alternative price framework that allowed companies to list on the Capital Market tier at share values between $2.00 and $4.00. As a result, all corporate applicants seeking initial listing must now satisfy a uniform, non-negotiable $4.00 minimum bid price.
This action represents another step in a continuous campaign by the exchange to elevate entry criteria and remove low-priced securities from public circulation. I’ve included an updated tally of recent Nasdaq rule changes affecting listing and continued listing eligibility at the end of this blog.
The Demise of the Alternative Price Requirement
Historically, Listing Rule 5505(a)(1)(B) provided a flexible pathway for emerging businesses seeking a national quotation. Under this provision, an applicant could qualify with an initial bid price between $2.00 and $4.00, provided the security satisfied an exclusion from statutory penny stock status under Exchange Act Rule Read More »
