NEW SPECIAL REPORT: THE $0.25 TARGET
NakedShortStop™ has launched a new Active Special Report examining a recently approved NYSE American rule that could fundamentally change what happens when the share price of a small public company falls below $0.25.
Beginning July 1, 2027, a single closing price below $0.25 can trigger the immediate suspension of trading and commencement of delisting proceedings.
The rule is intended to protect investors from securities considered particularly vulnerable to manipulation.
But it raises a question that deserves closer examination:
Could a threshold designed to protect investors from manipulation inadvertently create a target for it?
PART ONE – THE REGULATORY CLIFF
Part One examines the mechanics of the new $0.25 threshold, the absence of a mandatory cure period, the consequences of immediate suspension, and the historical evidence considered during the SEC’s review.
It also examines a critical feature of the rule:
The trigger responds to the price. It does not necessarily establish what caused the price.
And this is only the beginning.
The regulatory record shows that concerns about short-selling activity and potential manipulation around the threshold were raised before the rule was approved.
Those warnings will be examined in Part Two.