All three U.S. exchanges now require at least a $4 share price to list. To stay listed, Nasdaq and the NYSE use a $1 price test with a cure period (180 days on Nasdaq, six months on the NYSE), while NYSE American has no fixed $1 rule. Each exchange limits repeated reverse splits, and the NYSE's size requirements are by far the highest.
- All three exchanges now require a $4 share price to list.
- Nasdaq and the NYSE have a $1 continued listing price test; NYSE American has no fixed number.
- Cure periods differ: 180 days on Nasdaq's $1 rule, six months on the NYSE's, up to 18 months under NYSE and NYSE American plans.
- All three limit reverse splits: Nasdaq at one year or 250-to-1, the NYSE at one year or 200-to-1, NYSE American at 200-to-1.
- Proposed $5 million rules at Nasdaq and NYSE American are not in effect as of October 20, 2026.
You see “receives Nasdaq deficiency notice” in one headline and “NYSE American accepts compliance plan” in another. The rules behind those headlines are different on each exchange. This guide puts the rules that matter most for small and low-priced stocks side by side: what it takes to list, what it takes to stay listed, how long a company has to fix a problem, and how each exchange limits reverse splits.
Rules are current as of October 20, 2026. We update this page when the exchanges or the SEC change them. This is educational content, not advice about any stock.
The quick comparison
This table covers the main stock-listing tier for small companies on each exchange: the Nasdaq Capital Market, the NYSE (its domestic-company standards) and NYSE American. Each exchange has several alternative standards; a company only has to meet one. The numbers below are the ones small caps usually run into.
| Rule | Nasdaq Capital Market | NYSE | NYSE American |
|---|---|---|---|
| Minimum price to list | $4 bid. A $3/$2 closing-price alternative is being removed (Nasdaq filing operative 30 days after Sept 30, 2026). | $4 | $4 (raised from $3/$2, approved March 27, 2026) |
| Minimum price to stay listed | $1.00 closing bid; deficient after 30 consecutive business days below | $1.00 average closing price over 30 consecutive trading days | No fixed number; “low price for a substantial period” can lead to a required reverse split |
| Public float value to list | $15 million market value of unrestricted publicly held shares (from offering proceeds in an IPO) | $40 million market value of publicly held shares in an IPO; $100 million for other listings | $15 million of unrestricted publicly held shares ($20 million under Standard 4); IPOs need $15 million from offering proceeds |
| Public float value to stay listed | $1 million market value of publicly held shares | No separate float-value test (see market value and equity row) | Below $1 million in publicly held shares for more than 90 consecutive days can trigger delisting |
| Stockholders' equity to list | $5 million (equity standard) or $4 million (market value or net income standards) | No standalone equity test; companies qualify on earnings or a $200 million global market cap | $4 million (Standards 1 and 3), $5 million (Standard 2); none under Standard 4 |
| Equity or size to stay listed | $2.5 million equity, or $35 million market value of listed securities, or $500,000 net income | Below compliance if 30-day average market cap is under $50 million and equity is under $50 million; under $15 million average market cap means prompt delisting | $2 million, $4 million or $6 million equity, depending on how many recent years had losses |
| Holders to list | 300 unrestricted round-lot holders; 1 million unrestricted publicly held shares | 400 round-lot holders; 1.1 million publicly held shares | 800 public shareholders with 500,000 publicly held shares, or 400 with 1,000,000 |
| Holders to stay listed | 300 public holders; 500,000 publicly held shares | 400 total holders (or 1,200 if volume is low); 600,000 publicly held shares | 300 holders of publicly held shares; 200,000 publicly held shares |
| Time to fix a $1 price problem | 180 days; a possible second 180 days for Capital Market companies | Six months | No set period (no $1 rule) |
| Time to fix other deficiencies | Plan due in 45 days; staff can grant up to 180 days (equity, holders) | Plan due in 45 days; up to 18 months (market value and equity test) | Plan; up to 18 months (equity) |
| Very low price fast track | $0.10 or less for 10 consecutive business days: immediate suspension | Exchange says it acts below $0.10 now; a close under $0.25 on any day means suspension from July 1, 2027 | Exchange says it acts below $0.10 now; a close under $0.25 on any day means suspension from July 1, 2027 |
| Reverse split limits | No compliance period after any reverse split in the prior year, or 250-to-1 cumulative over two years | No cure period after a reverse split in the prior year, or 200-to-1 cumulative over two years | Immediate delisting after 200-to-1 cumulative over two years, or a split that breaks another listing rule |
Each line is explained, with its source, in the sections below.
Getting listed: initial listing standards
Initial standards decide which companies can list at all. Small caps that move up from the over-the-counter (OTC) market, or list through a small IPO, have to clear these.
Nasdaq Capital Market
A company must meet one of three standards (equity, market value of listed securities, or net income). All three require at least a $4 bid price, 1 million unrestricted publicly held shares, 300 unrestricted round-lot holders (people holding at least 100 shares, with at least half holding $2,500 or more), three market makers and $15 million in market value of unrestricted publicly held shares. Stockholders' equity must be at least $5 million under the equity standard (which also needs two years of operating history) or $4 million under the other two (Nasdaq Initial Listing Guide).
Recent changes made Nasdaq stricter for small companies:
- IPO float must come from the offering. Since a change approved March 12, 2025, a company listing with an IPO must meet the float value requirement with shares sold in the offering, not with previously issued shares registered for resale (SEC order).
- Net income standard raised to $15 million. In December 2025 the float value needed under the net income standard went from $5 million to $15 million (SEC order).
- The $3/$2 price alternative is going away. Nasdaq filed on September 30, 2026 to remove the rule that let some companies list at a $3 or $2 closing price, so every company would need $4. Nasdaq said the change would be operative 30 days after filing (SEC notice).
NYSE
The NYSE's standards are far larger. A company listing at its IPO needs 400 round-lot holders, 1.1 million publicly held shares, $40 million in market value of publicly held shares ($100 million for other listings) and a $4 price (NYSE Manual 102.01B, NYSE overview). It must also pass a financial test, either an earnings test or a $200 million global market capitalization test. There is no standalone stockholders' equity requirement for an operating company (NYSE overview).
NYSE American
NYSE American has four standards. Since a change the SEC approved on March 27, 2026, every standard requires a $4 stock price (up from $3, or $2 under Standard 3) and float is counted only from unrestricted publicly held shares: $15 million under Standards 1 to 3 and $20 million under Standard 4. Any company listing with an IPO or other underwritten offering needs $15 million from the offering itself (SEC order, rule text).
- Standard 1: $4 million equity and $750,000 pre-tax income.
- Standard 2: $5 million equity (raised from $4 million) and two years of operations.
- Standard 3: $4 million equity and a $50 million market cap.
- Standard 4: $75 million market cap, or $75 million each in total assets and revenue.
For distribution, NYSE American counts public shareholders rather than round-lot holders: 800 public shareholders with 500,000 publicly held shares, or 400 with 1,000,000 shares (Section 102(a)).
Staying listed: continued listing standards
Once listed, a company has to keep meeting lower, continued standards. This is where deficiency notices come from.
Nasdaq Capital Market
Every Capital Market company needs a $1 bid price, 300 public holders, 500,000 publicly held shares, $1 million market value of publicly held shares and two market makers. It also needs one of: $2.5 million in stockholders' equity, $35 million market value of listed securities, or $500,000 net income from continuing operations (Nasdaq Continued Listing Guide).
If the company falls short on equity or holders, it generally has 45 calendar days to submit a plan, and Nasdaq staff can grant up to 180 calendar days to regain compliance (SEC order).
NYSE
The NYSE considers a company below compliance if its average global market capitalization over 30 consecutive trading days is under $50 million and, at the same time, stockholders' equity is under $50 million. If average market cap falls below $15 million over 30 trading days, the NYSE promptly starts delisting, with no cure plan (NYSE Manual 802.01B). Distribution rules require at least 400 total holders (or 1,200 if average monthly volume is under 100,000 shares) and 600,000 publicly held shares (802.01A).
For the $50 million test, the NYSE notifies the company within 10 business days. The company has 10 business days to respond, 45 days to submit a plan, and up to 18 months to return to compliance (NYSE Manual 802.02).
NYSE American
NYSE American's equity test depends on the company's loss history: at least $2 million if it had losses in two of its last three fiscal years, $4 million for losses in three of the last four, and $6 million for losses in each of the last five (company notice citing Section 1003(a)). The exchange also considers delisting when publicly held shares fall below 200,000, holders of publicly held shares fall below 300, or their market value stays below $1 million for more than 90 consecutive days (Section 1003(b)).
A company that falls below these standards can submit a plan, and companies have disclosed cure periods of up to 18 months under Section 1009 (example notice).
The price rules in plain English
Nasdaq: the $1 rule
A closing bid below $1.00 for 30 consecutive business days triggers a notice and an automatic 180-day compliance period. The company cures by closing at $1.00 or higher for at least 10 consecutive business days. A Capital Market company may get a second 180 days if it meets the other listing standards and says it will cure, including by reverse split. A stock at $0.10 or less for 10 consecutive business days is suspended right away (SEC order). Full details: what the Nasdaq $1 rule means for your shares.
NYSE: the $1 average
An average closing price below $1.00 over 30 consecutive trading days starts the process. The company must tell the NYSE within 10 business days that it intends to cure, and has six months. It cures if, on the last trading day of any month, it has both a $1.00 closing price and a $1.00 average over the prior 30 trading days (SEC order). The NYSE says that today it promptly starts delisting when a stock trades below $0.10. From July 1, 2027, a close below $0.25 on any trading day will mean immediate suspension (SEC order).
NYSE American: no fixed number (yet)
Section 1003(f)(v) lets NYSE American delist a stock that sells “for a substantial period of time at a low price per share” if the company doesn't do a reverse split within a reasonable time after being told to (rule text). The exchange says staff talk with companies trading below $1.00 and start delisting when a stock trades below $0.10. From July 1, 2027, a close below $0.25 on any trading day will mean immediate suspension, with no cure plan (SEC order).
Reverse split limits
A reverse split cuts the number of shares and raises the price per share in the same proportion. Companies often use one to get back above a price rule, so all three exchanges now limit them:
- Nasdaq: if a stock falls below $1 and the company did any reverse split in the prior year, or splits with a cumulative ratio of 250-to-1 or more over two years, it gets no compliance period and receives a delisting determination (SEC order, 2026 SEC order). A split that fixes the price but pushes the company below another rule, such as publicly held shares or holders, doesn't count as a cure (SEC order).
- NYSE: a company that falls below the $1 test after a reverse split in the prior year, or splits totaling 200-to-1 or more over two years, gets no cure period, and the NYSE immediately starts suspension and delisting (SEC order).
- NYSE American: splits totaling 200-to-1 or more over two years, or a split that drops the company below any continued listing standard, mean immediate suspension and delisting with no cure plan (SEC order, rule text).
Companies trying to stay listed sometimes raise cash at the same time, which adds shares; see why a stock can drop after an offering.
Rules that are proposed or stayed
As of October 20, 2026: neither $5 million rule is in effect. Nasdaq's rule would delist a company immediately if its market value of listed securities stays below $5 million for 30 consecutive business days, with no cure period. SEC staff approved it on July 22, 2026 (SEC order), but the approval was stayed, and on September 11, 2026 the full Commission granted review and kept the stay in place (SEC order). NYSE American has proposed a similar rule: a $5 million average market cap over 30 trading days, with immediate delisting below it. The SEC began proceedings on whether to approve it in June 2026 (SEC order).
What to check on a stock you follow
These are questions to look into, not signals to buy or sell:
- Which exchange and tier is it on? The same “under $1” headline means different deadlines on Nasdaq, the NYSE and NYSE American.
- Has it received a deficiency notice? Companies report these on Form 8-K under Item 3.01, so you can search for them on SEC EDGAR.
- Has it done a reverse split recently? Check the past year and the past two years, because the split limits above can remove any grace period.
- How close is it to a very low price threshold? That means $0.10 on Nasdaq today, and $0.25 on the NYSE and NYSE American from July 1, 2027.
- Is it raising money? Offerings can help equity tests but add shares. See how offerings and dilution work.
Frequently asked questions
What is the difference between Nasdaq and NYSE listing rules for small caps?
All three exchanges now require a $4 share price to list. To stay listed, Nasdaq and the NYSE both use a $1 price test, but Nasdaq counts 30 business days of closing bids while the NYSE uses a 30-trading-day average closing price. NYSE American has no fixed $1 test. The NYSE also requires much more size, such as a $50 million market value or $50 million in stockholders' equity.
Which exchanges have a $1 minimum price rule?
Nasdaq and the NYSE. On Nasdaq, a closing bid below $1.00 for 30 consecutive business days starts a 180-day compliance period. On the NYSE, an average closing price below $1.00 over 30 consecutive trading days starts a six-month cure period. NYSE American instead looks at whether a stock has traded at a low price for a substantial period, and can require a reverse split.
What are NYSE American's low-price rules?
NYSE American has no set $1 test. It can delist a stock that trades at a low price for a substantial period if the company doesn't do a reverse split when asked. The exchange says it now acts when a stock trades below $0.10. A rule approved in August 2026 will make a close below $0.25 on any trading day an immediate suspension, starting July 1, 2027.
How long does a company have to fix a listing deficiency?
It depends on the rule and the exchange. Nasdaq's $1 rule gives 180 days, and some Capital Market companies get a second 180 days. For problems such as low stockholders' equity, Nasdaq staff can accept a plan and grant up to 180 days. The NYSE gives six months for its $1 rule and up to 18 months under a plan for its market value and equity test. NYSE American plans can run up to 18 months.
Can a company keep doing reverse splits to stay listed?
Not freely. On Nasdaq, a company that did any reverse split in the past year, or splits totaling 250-to-1 or more over two years, gets no compliance period if it falls below $1 again. The NYSE uses one year or 200-to-1 over two years. NYSE American starts immediate delisting after splits totaling 200-to-1 or more over two years, or a split that breaks another listing rule.
What are round-lot holders?
A round-lot holder owns at least 100 shares. Nasdaq Capital Market requires 300 unrestricted round-lot holders to list, and at least half of them must each hold shares worth $2,500 or more. The NYSE requires 400 round-lot holders. NYSE American counts public shareholders instead: 800 with 500,000 publicly held shares, or 400 with 1,000,000 shares.
Is the Nasdaq $5 million market value rule in effect?
Not as of October 20, 2026. SEC staff approved it on July 22, 2026, but the approval was stayed after petitions for review, and on September 11, 2026 the full Commission agreed to review it and kept the stay in place. NYSE American has proposed a similar $5 million market capitalization rule, which the SEC had not approved as of the same date.
Does a deficiency notice mean my stock will be delisted?
No. A deficiency notice is a warning that starts a clock. The stock usually keeps trading on its exchange while the company tries to regain compliance. Some situations skip the clock, such as very low prices or recent reverse splits. If a stock is delisted, you still own your shares, but they typically trade over the counter.
Stay on top of the market
Listing rules decide how long a struggling company can stay on its exchange. Knowing them helps you read the headlines.
Sources
- Nasdaq Initial Listing Guide (January 2026)
- Nasdaq Continued Listing Guide (August 2026)
- SEC notice: Nasdaq SR-NASDAQ-2026-082, removing the $3/$2 alternative price for Capital Market listings (Oct 7, 2026)
- SEC order: Nasdaq SR-NASDAQ-2025-068, $15 million MVUPHS under the net income standard (Dec 2025)
- SEC order: Nasdaq SR-NASDAQ-2024-084, IPO float must come from offering proceeds (Mar 12, 2025)
- SEC order: Nasdaq SR-NASDAQ-2024-045, reverse splits and bid price compliance periods (Jan 17, 2025)
- SEC order: Nasdaq SR-NASDAQ-2024-029, reverse splits that cause other deficiencies (Oct 7, 2024)
- SEC order: Nasdaq SR-NASDAQ-2025-065, the $0.10 rule (Dec 5, 2025)
- SEC staff order: Nasdaq SR-NASDAQ-2026-004, $5 million MVLS rule (July 22, 2026)
- SEC order granting review and continuing the stay of the $5 million rule (Sept 11, 2026)
- NYSE Listed Company Manual 102.01B rule text (SEC filing exhibit, SR-NYSE-2024-49)
- NYSE Regulation: Initial listing standards overview
- NYSE Listed Company Manual 802.01A and 802.01B rule text (SEC filing exhibit, 2016)
- NYSE Listed Company Manual 802.02 rule text (SEC filing exhibit, 2024)
- SEC order: NYSE SR-NYSE-2024-48, 802.01C price criteria and reverse split limits (Jan 15, 2025)
- SEC order: NYSE SR-NYSE-2025-43, $0.25 minimum trading price, effective July 1, 2027 (Aug 14, 2026)
- SEC order: NYSE American SR-NYSEAMER-2026-02, new initial listing standards (Mar 27, 2026)
- NYSE American Company Guide Sections 101, 102 and 1003(b) rule text (SEC filing exhibit, SR-NYSEAMER-2026-02)
- SEC order: NYSE American SR-NYSEAMER-2024-61, reverse split limits (Jan 16, 2025)
- NYSE American Company Guide Section 1003(f) rule text (SEC filing exhibit, SR-NYSEAMER-2024-61)
- SEC order: NYSE American SR-NYSEAMER-2025-72, $0.25 minimum trading price, effective July 1, 2027 (Aug 14, 2026)
- SEC order instituting proceedings: NYSE American SR-NYSEAMER-2026-17, proposed $5 million market cap rule (June 2, 2026)
- Example company notice citing NYSE American Section 1003(a) equity tiers and Section 1009 cure period (SEC filing, Apr 2026)
Not financial advice. This article is for educational purposes only and is not financial, investment, legal or tax advice. Listing rules change; check the cited Nasdaq, NYSE, NYSE American and SEC sources for the latest version. Trading low-priced stocks carries a high risk of loss. Trade Conquest does not recommend buying or selling any security.