Market Capitalization Rule

AAA

DEFINITION of 'Market Capitalization Rule'

A rule set by the New York Stock Exchange (NYSE) to determine a minimum market value to be listed continuously. The Market Capitalization Rule states that companies must maintain a minimum value of $25 million over 30 consecutive days to remain listed. This standard value was set in 2004.

INVESTOPEDIA EXPLAINS 'Market Capitalization Rule'

Due to the downturn of the global economy in 2008-2009, the NYSE temporarily amended the market capitalization rule in January of 2009. The minimum value was reduced so that companies who are able to maintain a market value of over $15 million for 30 trading days in a row would remain listed until April 22, 2009.

RELATED TERMS
  1. Global Recession

    An extended period of economic decline around the world. The ...
  2. Large Cap - Big Cap

    A term used by the investment community to refer to companies ...
  3. Market Capitalization

    The total dollar market value of all of a company's outstanding ...
  4. New York Stock Exchange - NYSE

    A stock exchange based in New York City, which is considered ...
  5. Standard & Poor's - S&P

    The world's leading index provider and the foremost source of ...
  6. Capitalization-Weighted Index

    A type of market index whose individual components are weighted ...
Related Articles
  1. The Dirt On Delisted Stocks
    Investing Basics

    The Dirt On Delisted Stocks

  2. Which Mutual Fund Market Cap Suits You?
    Mutual Funds & ETFs

    Which Mutual Fund Market Cap Suits You?

  3. Market Capitalization Defined
    Insurance

    Market Capitalization Defined

  4. S&P 500 ETFs: Market Weight Vs. Equal ...
    Mutual Funds & ETFs

    S&P 500 ETFs: Market Weight Vs. Equal ...

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center