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Stocks that trade under $5/share are considered "penny stocks", exchanges generally don't want penny stocks on their list because they don't want to endorse the
by malfist 4y ago
Stocks that trade under $5/share are considered "penny stocks", exchanges generally don't want penny stocks on their list because they don't want to endorse them. They're highly volatile, and can be easily manipulated.
I believe for DIJA if they have a valuation under $2 for longer than a year they get delisted.
This doesn't mean you can't trade them anymore, they just become OTC (over the counter) stocks. Many brokers offer access to OTC stocks, but liquidity is a real concern with those stocks.
- Kon-Peki 4y agoAlso, if a stock gets delisted that isn't necessarily permanent. If the company gets it act together it can be re-listed on the exchange. For example, Tandy Leather Factory was delisted from Nasdaq in 2020 because of accounting problems (I think) and was re-listed about 3 months ago.