Anything Wrong with Breaking a Buck? An Empirical Evaluation of NASDAQ’s $1-Minimum-Price Maintenance Criterion

Abstract

This paper empirically evaluates the effects of NASDAQ’s $1-minimum-bid-price threshold (known as the one-dollar rule) as part of its listing maintenance criteria. Even though this controversial rule was introduced as early as in September 1991, it remained unexplored by academic research. Empirical evidence compiled in this study suggests that the… (More)

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