What happens when a stock's price falls below $1?

Question

Apparantly something significant happens at that moment, but I'm not sure what it is. Can anyone help?

Answer 1

Delisted

Answer 2

Nothing really happens because there are such a thing as sub-pennies, which are stocks that trade for less than $.01

If a stock is listed, if there is no interest in it, the stock will be delisted from the exchange.  Stocks that sell for a penny have very little interest especially by those that trade/invest in listed stocks.

You can check the "Pink Sheets" for a full listing of pennystocks http://www.pinksheets.com/pink/quote/ind...

Answer 3

It gets delisted from most exchanges and it starts trading on the Over The Counter Market.