2024-2025 Developments Regarding NYSE And Nasdaq Listing Rules

Throughout 2024 and early 2025, the Securities and Exchange Commission (SEC) has approved a variety of changes to the listing rules of the New York Stock Exchange LLC (NYSE) and The Nasdaq Stock Market LLC (Nasdaq) relating to reverse stock splits, minimum share price requirements and related grace periods, and other matters. This memorandum summarizes the more significant of these changes.¹ Unless otherwise noted, all of the listing rule changes described below have been approved by the SEC and are effective.

I. Reverse Stock Splits²

NYSE³

The NYSE has changed its rules regarding reverse stock splits in two respects. The first rule change relates to the compliance period applicable when an NYSE-listed company's average closing price per share is less than $1.00 for 30 consecutive trading days and the company engages in a reverse stock split (or other action that requires stockholder approval) in order to regain compliance with the minimum share price