What is the stock price criterion for listing on the NYSE?

To be listed on the New York Stock Exchange (NYSE), securities are required to meet specific criteria, one of which includes a minimum stock price. Currently, the minimum bid price for a security to be listed on the NYSE is $4. This requirement ensures that only stocks with a certain level of market value and investor interest are able to be traded on this major exchange.

The rationale behind setting a minimum stock price is to maintain the integrity and reputation of the NYSE, and to encourage companies to have a stable operating performance, as reflected in their stock price. Stocks trading below this threshold may not be viewed as financially healthy or viable for long-term investment.

If the stock price criterion were lower—such as $2, $3, or $5—it could potentially allow listings for companies that are struggling financially or do not have strong market presence, which could lead to increased volatility and lower investor confidence on the exchange. Thus, the $4 minimum price serves as a filter to ensure that companies meeting this criterion are more likely to provide a stable investment option for prospective stockholders.