The New York Stock Exchange won't have Thornburg Mortgage
We've seen a ton of stocks with household names fall below the $1 mark this year. Now they're starting to pay the price.
Thornburg Mortgage has been on the clock since May, after its stock traded for less than a dollar for 30 consecutive trading days. The exchange then gave the company six months to get its stock price back on the good side of the buck.
Reverse splits are typically the easy way out. Online apparel retailer Bluefly
With so many stocks on Wall Street's dollar menu, expect a lot more companies to be forced into deciding between a reverse split and expulsion from the exchange. Terrestrial radio's Citadel Broadcasting
Their dilemma is unfortunate. Reverse splits are zero-sum games, but they're sadly becoming the best way out for some of these companies. Hopefully, the others will put up more of a fight than Thornburg, or the exchange itself may have to reconsider its listing requirements during this brutal equity downturn.
Further fully listed Foolishness:
Longtime Fool contributor Rick Munarriz takes pride in ordering from the Mickey D's dollar menu. He owns shares in Six Flags. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool's disclosure policy's preferred form of split is "banana."