Latest News:  
Beijing   Sunny/Cloudy    16 / 4   City Forecast

Home>>World

U.S. to heighten listing requirements for reverse merger companies

(Xinhua)

09:57, November 10, 2011

WASHINGTON, Nov. 9 (Xinhua) -- The U.S. Securities and Exchange Commission (SEC) on Wednesday approved new rules for the three major U.S. listing markets to toughen standards for companies going public through a reverse merger.

Currently, reverse merger companies like other operating companies can pay to be listed on an exchange. However, in some cases, regulators and auditors have greater difficulty getting reliable information from merger companies, particularly those based overseas, noted the SEC.

To prevent accounting fraud, Nasdaq, NYSE, and NYSE Amex proposed additional rules to impose more stringent listing requirements for companies that become public through a reverse merger.

Under the new rules, a reverse merger company, applying to list, is required to complete a one-year "seasoning period" by trading in the U.S. over-the-counter market or on another regulated U.S. or foreign exchange following the reverse merger.

In addition, the company has to maintain the requisite minimum share price for a sustained period, and for at least 30 of the 60 trading days, immediately prior to its listing application and the exchange's decision to list.

 
 
     
 
 
 
     
 
 
 
  We Recommend  
 
 
 
     
 
 

Email|Print|Comments(Editor:实习生1)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Buddhist art exhibition held at the Museum of World Religions in Taipei

  2. Sotheby's yellow diamond to sell at record price

  3. U.S. aircraft carrier USS George Washington pulls in HK waters

  4. Lantern Festival kicks off at the Cheonggye stream in central Seoul

Most Popular

Opinions

  1. China's dilemma over Iran goes deeper
  2. China must act to save energy, cut emissions
  3. Will US, Israel attack Iran?
  4. Market blow away 'special air' rumors
  5. Bridges and factories could woo American hearts
  6. Keeping a cool head crucial ahead of big events
  7. US must ease restrictions on exports to China
  8. No easy answers in Greek debt crisis
  9. House prices, pain and gain
  10. Why China gains big leap skyward

What's happening in China

Cheap fees take a toll on traffic

  1. Man in 70s stabs wife
  2. Food-testing costs passed on to consumers
  3. Israel seeks closer tech link with China
  4. Jobs crunch hits traffic engineering graduates
  5. Experts discuss taming Internet in microblog era

PD Online Data

  1. Lunar New Year´s Eve (I)
  2. Lunar New Year´s Eve (II)
  3. Little New Year (I)
  4. Little New Year (II)
  5. House Cleaning