alt Hacker NewsThe need for reverse splits seems like a purely technical limitation? If we allowed stock prices to trade in fractions of a cent, then there'd be no real need for a price floor would there?
The need for reverse splits seems like a purely technical limitation? If we allowed stock prices to trade in fractions of a cent, then there'd be no real need for a price floor would there?
> The need for reverse splits seems like a purely technical limitation? If we allowed stock prices to trade in fractions of a cent, then there'd be no real need for a price floor would there?
It is a perception management issue, not a technical limitation.
Nasdaq doesn't want to be seen as a place where people trade literal penny stocks.
Technically the major exchanges already support stock prices in a fraction of a cent (though they only unlock this for stock prices that are below $1 due to SEC Rule 612).