Nasdaq suspends listing requirements until January

Friday, Sept. 28, 2001 | 9:41 a.m.

SUN STAFF AND WIRE REPORTS

NEW YORK -- The Nasdaq Stock Market has temporarily suspended certain trading requirements to help companies remain listed on the exchange and to ease the economic turmoil following this month's terrorist attacks.

The stock market, which lists more than 4,300 companies, said Thursday that the moratorium is effective until Jan. 2, 2002.

The move exempts companies from meeting minimum share price and public float requirements to stay listed on the exchange. Float refers to the number of outstanding shares available for trading by the public.

"It gives those companies that were on the cusp of delisting a chance to weather the uncertain times a little more," said Nasdaq spokesman Michael DeMeo.

The Nasdaq does not release the number of companies that face delisting, he said.

A company's shares must trade above a minimum price, usually a dollar, to stay listed on the Nasdaq. The minimum value of a public float of a company's shares varies.

Companies that fail to meet either requirement for 30 days are automatically notified they face delisting, but are given 90 days to comply with the regulations.

Nasdaq's decision is likely to help PurchasePro, a Las Vegas software company that had been faced with the possibility of delisting prior to the terrorist attacks. PurchasePro traded this morning at 58 cents per share.

Nasdaq Chairman and Chief Executive Wick Simmons said suspending the requirements will help stabilize the economy.