Wall Street Wins? SEC Approves Nasdaq Delisting Rule for Small Firms
SEC approves Nasdaq’s new $5M listing threshold, fast-tracking delisting for small firms with no standard 180-day cure period now.
The Securities and Exchange Commission approved a Nasdaq rule change on July 22, 2026.
The rule sets a new minimum Market Value of Listed Securities at $5 million. It applies across the Global Select, Global, and Capital markets.
Companies that fall below the threshold for 30 straight business days now face immediate suspension and delisting. There is no standard cure period this time.
How the $5 Million Threshold Works
Market value under the rule comes from multiplying a company’s closing bid price by its total listed shares. Once that figure sits below $5 million for 30 consecutive business days, Nasdaq treats the company as non-compliant.
Staff issue a delisting determination right away. Trading on Nasdaq stops immediately after that determination. Shares typically move to over-the-counter markets while any appeal plays out. Appeals only succeed in narrow cases.
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