NYSE may allow penny stocks

With many major companies trading in penny-stock territory, the New York Stock Exchange is considering relaxing a rule that requires shares to trade above a dollar. "That's something that we're considering, given the market environment," said NYSE Euronext spokesman Raymond Pellechia. Currently, an NYSE-listed company's shares cannot remain below $1 over 30 consecutive days. To stay listed, a company must present a plan to the NYSE for how it will boost its stock price. The exchange has yet to submit a formal proposal to the Securities and Exchange Commission to temporarily ease the requirement, Pellechia said. Although it's a long-standing NYSE rule, he said, the SEC would have to approve the rule change. The NYSE has already lowered the minimum market capitalization for listed stocks. On Jan. 23, the exchange temporarily decreased the threshold to $15 million from $25 million. The minimum market cap was raised to $25 million from $15 million in 2004. Some NYSE-listed companies trading below $2 a share recently include automakers General Motors Corp. and Ford Motors Corp.; retailer Office Depot Inc.; and media company E.W. Scripps Co. NYSE-listed companies already trading below $1 a share include the bailed-out insurer American International Group Inc. and home builder Hovnanian Enterprises Inc. The Nasdaq stock market in October announced a three-month suspension of its minimum bid price and market value, and extended the suspension in December.