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ARTICLE · 23 OCTOBER 2026

Nasdaq Eliminates Sub-$4 Initial Listing Path On The Nasdaq Capital Market

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Nasdaq has proposed eliminating its Alternative Price Requirement, which currently allows companies to list on the Nasdaq Capital Market at prices between $2 and $4 under certain conditions. The rule change would establish a uniform $4 minimum price requirement for all initial listings, aligning Nasdaq with other national securities exchanges after NYSE American removed its own sub-$4 listing option in March 2026.

United StatesFinance and Banking
Ali Perry
Ali Perry
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On October 7, 2026, the Securities and Exchange Commission (the “SEC”) posted notice of Nasdaq’s proposed rule change (File No. SR-NASDAQ-2026-082) to amend Nasdaq Listing Rule 5505 to require a minimum $4 price in all instances for initial listings on the Nasdaq Capital Market. Currently, Nasdaq allows companies to list on the Nasdaq Capital Market at a price between $2 and $4 if they meet additional requirements that place the security within an exclusion from the definition of “penny stock” under Rule 3a51-1(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act’). This path, called the “Alternative Price Requirement” and found in Listing Rule 5505(a)(1)(B), allows:

  • a minimum closing price of $3 per share for companies that meet the Equity or Net Income Standards under Nasdaq Listing Rules 5505(b)(1) or (b)(3); or

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