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"Pig Killing Plan" Forces Thunderous Means U.S. SEC Approvals New Rules for Nasdaq to Accelerate Delisting

2026-07-25·newswire-us-stock-114001
"Pig Killing Plan" Forces Thunderous Means U.S. SEC Approvals New Rules for Nasdaq to Accelerate Delisting.

The U.S. Securities and Exchange Commission on Wednesday approved rule changes for the Nasdaq exchange to speed up the removal of troubled micro-cap "penny stocks".

(Source: US SEC) Briefly, this new regulation requires that if a company listed on Nasdaq has a market value of listed securities (MVLS) of less than $5 million for 30 consecutive trading days, it will immediately suspend trading and initiate delisting procedures.

More importantly, unlike the current delisting procedure, companies that trigger this procedure will not have their trading suspension suspended even if they file a complaint with the Nasdaq Listing Qualification Hearing Committee.

During the appeal period, the stocks of quasi-delisted companies can usually only be traded in over-the-counter markets such as OTC. The rules apply to all listed companies on Nasdaq Global Market and Nasdaq Capital Market.

As a background to the introduction of new Nasdaq delisting regulations, frauds using micro-cap stocks to “pump and dump” have repeatedly occurred in the U.S. market in recent years. This kind of scam is commonly known as "Pig Killing Plate".

The fraud gang usually first buys large quantities of less liquid small-cap stocks, low-price stocks or "shell company" stocks at low prices, and then spreads exaggerated or false good news through social media, investment forums, private communities, etc.

After attracting retail investors to enter the market, the fraud gang will concentrate on selling at high prices, triggering a cliff-like plunge in stock prices. The U.S.

Securities and Exchange Commission also wrote in its latest executive order that stocks with low prices and low market capitalization are more likely to be manipulated because fraudsters need less money to affect the stock price.

According to statistics, there are currently about 180 companies listed on Nasdaq with a market value of less than US$5 million, one-third of which are Asian companies. Past experience shows that these types of companies are more likely to be targeted by "pump and dump" scams.

The Nasdaq Exchange first proposed this new rule to accelerate the delisting of micro-cap stocks in January this year. Coupled with U.S. regulatory concerns about the manipulation of micro-cap stocks, the popularity of such stock IPOs in 2026 has almost dropped to freezing point.

As of mid-July, only 13 "micro-cap" companies were listed on Nasdaq and the New York Stock Exchange this year. The number was close to 80 in the same period last year, and nearly 140 for the whole year.

After Nasdaq proposed new delisting regulations, Castle Securities, Charles Schwab and the Securities Industry Association of America (SIFMA) all expressed support. But the rule also faced fierce opposition from small businesses, lawyers and related groups. Some voices believe that attempts to curb alleged misconduct will harm start-ups that operate legally.

Marc Indeglia, president of the Small Public Company Coalition (SPCC), which represents investors in the small-cap and micro-cap markets, said: "This rule will disproportionately affect small businesses, weaken capital formation, and create adverse incentives for short selling among small companies.

It is inconsistent with the Commission's current philosophy of 'making IPOs great again' and promoting capital formation."

#Stocks #IPO #Nasdaq

Full text

"Pig Killing Plan" Forces Thunderous Means U.S. SEC Approvals New Rules for Nasdaq to Accelerate Delisting

The U.S. Securities and Exchange Commission on Wednesday approved rule changes for the Nasdaq exchange to speed up the removal of troubled micro-cap "penny stocks". (Source: U.S. SEC) Briefly, this new regulation requires that if the market value of listed securities (MVLS) of a company listed on Nasdaq is less than US$5 million for 30 consecutive trading days, it will immediately suspend trading and initiate delisting procedures. More importantly, unlike the current delisting procedure, companies that trigger this procedure will not have their trading suspension suspended even if they file a complaint with the Nasdaq Listing Qualification Hearing Committee.

The U.S. Securities and Exchange Commission on Wednesday approved rule changes for the Nasdaq exchange to speed up the removal of troubled micro-cap "penny stocks". (Source: US SEC) Briefly, this new regulation requires that if a company listed on Nasdaq has a market value of listed securities (MVLS) of less than $5 million for 30 consecutive trading days, it will immediately suspend trading and initiate delisting procedures. More importantly, unlike the current delisting procedure, companies that trigger this procedure will not have their trading suspension suspended even if they file a complaint with the Nasdaq Listing Qualification Hearing Committee. During the appeal period, the stocks of quasi-delisted companies can usually only be traded in over-the-counter markets such as OTC. The rules apply to all listed companies on Nasdaq Global Market and Nasdaq Capital Market. As a background to the introduction of new Nasdaq delisting regulations, frauds using micro-cap stocks to “pump and dump” have repeatedly occurred in the U.S. market in recent years. This kind of scam is commonly known as "Pig Killing Plate". The fraud gang usually first buys large quantities of less liquid small-cap stocks, low-price stocks or "shell company" stocks at low prices, and then spreads exaggerated or false good news through social media, investment forums, private communities, etc. After attracting retail investors to enter the market, the fraud gang will concentrate on selling at high prices, triggering a cliff-like plunge in stock prices. The U.S. Securities and Exchange Commission also wrote in its latest executive order that stocks with low prices and low market capitalization are more likely to be manipulated because fraudsters need less money to affect the stock price. According to statistics, there are currently about 180 companies listed on Nasdaq with a market value of less than US$5 million, one-third of which are Asian companies. Past experience shows that these types of companies are more likely to be targeted by "pump and dump" scams. The Nasdaq Exchange first proposed this new rule to accelerate the delisting of micro-cap stocks in January this year. Coupled with U.S. regulatory concerns about the manipulation of micro-cap stocks, the popularity of such stock IPOs in 2026 has almost dropped to freezing point. As of mid-July, only 13 "micro-cap" companies were listed on Nasdaq and the New York Stock Exchange this year. The number was close to 80 in the same period last year, and nearly 140 for the whole year. After Nasdaq proposed new delisting regulations, Castle Securities, Charles Schwab and the Securities Industry Association of America (SIFMA) all expressed support. But the rule also faced fierce opposition from small businesses, lawyers and related groups. Some voices believe that attempts to curb alleged misconduct will harm start-ups that operate legally. Marc Indeglia, president of the Small Public Company Coalition (SPCC), which represents investors in the small-cap and micro-cap markets, said: "This rule will disproportionately affect small businesses, weaken capital formation, and create adverse incentives for short selling among small companies. It is inconsistent with the Commission's current philosophy of 'making IPOs great again' and promoting capital formation."

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