NYSE Warns Circuit City About Listing Requirements

October 31, 2008 6:27 p.m. EST

Richmond, VA (AHN) - The New York Stock Exchange warned Circuit City Stores that its stock price does not meet minimum listings standards and could be delisted from the exchange.

The NYSE has a $1 minimum stock price as one of its listing standards. If a stock trades under that price for thirty consecutive days, the stock is considered non-complaint. Shares of Circuit City have traded below $1 since Sept. 30 when the stock closed at 76 cents.

Circuit City has 10 business days to respond to the NYSE with a plan of action to become complaint again. In order to reach compliance, shares of Circuit City would need to have a thirty day span where the average stock price is above $1 over the course of the next six months.

The company did not comment on what action it may take. However, one way to increase a stock price is by completing a reverse stock split. The shares price increases due to the number of outstanding shares being reduced.

Circuit City's ticker symbol "CC" will have a ".BC" attached to it to designate that it is not complaint with all listing standards.

Shares of Circuit City finished Friday at 26 cents, down 13 percent.