The Nasdaq minimum bid price rule says a listed stock must hold a closing bid of at least $1.00; 30 straight business days below it triggers a deficiency notice and a 180-calendar-day clock to get back above $1.00 for 10 straight business days. Miss that, and the path runs through a possible second 180 days (Capital Market only), a Hearings Panel, a reverse split, or the exit. The notice itself delists nothing; it starts a countdown with hard dates printed in an 8-K.
The $1 rule and the 30-day trigger
The requirement lives in two places: Rule 5450(a)(1) for the Nasdaq Global Select and Global Markets, and Rule 5550(a)(2) for the Nasdaq Capital Market. Nasdaq's own Continued Listing Guide (August 2026) lists a $1 bid price on every tier.
The trigger is in Rule 5810(c)(3)(A). As quoted in the SEC's October 2024 approval order, a failure exists when the deficiency "continues for a period of 30 consecutive business days," and then "the Company shall be notified promptly and shall have a period of 180 calendar days from such notification to achieve compliance." (A December 2025 amendment added the $0.10 test below as a second way to fail.) Compliance comes "by meeting the applicable standard for a minimum of 10 consecutive business days," unless Staff stretches that window under Rule 5810(c)(3)(H).
Two clocks, two units. The trigger and the cure count business days. The compliance period counts calendar days. That's where many traders get the dates wrong.
The compliance clock, step by step
| Stage | Rule | What the rule says |
|---|---|---|
| Deficiency | 5810(c)(3)(A) | Closing bid below $1.00 for 30 consecutive business days |
| First compliance period | 5810(c)(3)(A) | 180 calendar days from the notice |
| Cure | 5810(c)(3)(A), (H) | $1.00 or more for at least 10 consecutive business days; Staff may extend the 10 days |
| Second period | 5810(c)(3)(A)(i)-(ii) | Another 180 days for Capital Market companies (or those that transfer there) meeting the conditions below |
| Hearings Panel | 5815(c)(1)(A) | Panel may grant up to 180 days from the Staff Delisting Determination |
The second period is not automatic. Per Rule 5810(c)(3)(A)(ii) as described in the SEC's January 2025 order, the company must, on the 180th day, meet the market value of publicly held shares requirement and "all other applicable standards for initial listing on the Nasdaq Capital Market (except the bid price requirement)," and notify Nasdaq of its intent to cure. If Nasdaq doesn't think a cure is possible, or the company has publicly disclosed it no longer meets the criteria, there's no second period.
Global and Global Select companies get there by transferring down to the Capital Market, per Rule 5810(c)(3)(A)(i).
The trapdoors added since 2024
Nasdaq has spent two years closing escape hatches, each in an SEC-approved rule change:
- The $0.10 rule, Rule 5810(c)(3)(A)(iii). Approved December 5, 2025 and operative 45 days later. A closing bid of $0.10 or less for ten consecutive business days is a failure "regardless of whether the company is under any compliance period." The result is a Staff Delisting Determination, immediate suspension from trading on Nasdaq and no compliance period. A hearing request does not stay that suspension.
- Recent reverse split, Rule 5810(c)(3)(A)(iv). If the stock fails the bid requirement and the company "has effected a reverse stock split over the prior one-year period," it gets no compliance period at all. Staff goes straight to a Delisting Determination, even if the stock was compliant when it split. The same rule also cuts off compliance periods after one or more reverse splits over two years with a cumulative ratio of 250 shares or more to one.
- No trading during the appeal, Rule 5815(a)(1)(B)(ii)d. A company that used the second 180-day period and still failed doesn't get a stay. The stock is suspended and, as Nasdaq told the SEC, would trade over the counter while the Panel decides.
- Splits that break other rules. Under the 2024 amendment to 5810(c)(3)(A), if the fix (say, a reverse split) pushes the company below another numeric standard such as Publicly Held Shares, the bid deficiency stays open until both are cured within the original compliance window.
Separately, on July 22, 2026 the SEC approved a $5 million minimum market value of listed securities rule (Rules 5450(a)(3) and 5550(a)(6)) with no compliance period; it is a separate test from the $1 bid rule.
Three 2026 notices, start to finish
Three US issuers, from their own 8-Ks. Closes are Yahoo daily closes; Nasdaq measures the closing bid, so treat them as a proxy.
| Company | Notice date | Deadline in filing | What happened next | Nov 4, 2026 close |
|---|---|---|---|---|
| Bridgeline Digital ($BLIN) | Jan 29, 2026 | Jul 28, 2026 | Regained compliance (Nasdaq letter Jun 10, 2026); new notice Oct 14, 2026, deadline Apr 12, 2027 | $0.74 |
| Accuray ($ARAY) | Feb 2, 2026 | Aug 3, 2026 | Moved from Global Select to Capital Market Aug 6, 2026; second period to Feb 1, 2027; 1-for-40 reverse split effective Nov 9, 2026 | $0.15 (pre-split) |
| CISO Global ($CISO) | Dec 30, 2025 | Jun 29, 2026 | Second period granted Jun 30, 2026, to Dec 28, 2026; reverse split (1-for-2 to 1-for-50) on the Nov 19, 2026 meeting agenda | $0.18 |
Bridgeline is the textbook cure, and a warning about how long a cure lasts. Its June 16, 2026 8-K says Nasdaq found the closing bid "at $1.00 per share or greater from May 27, 2026 to June 9, 2026," exactly ten business days. The Yahoo closes agree: $0.94 on May 26, then $1.19 on May 27 and $1.06 on June 9. By October 14 a new notice had arrived, and the stock closed at $0.74 at the November 4, 2026 close.
Accuray shows the transfer route. Its February 8-K spelled out that a second period required moving to the Capital Market, paying a fee and declaring an intent to cure "by effecting a reverse stock split, if necessary." It transferred and got the second period. The 1-for-40 split is set for November 9, 2026. Under Rule 5810(c)(3)(A)(iv), that date also starts a one-year window in which any new bid-price failure would get no compliance period.
CISO Global is on its second 180 days. Its July 8-K quotes the "written notice of our intention to cure the deficiency during the second compliance period by effecting a reverse stock split, if necessary." Accuray filed nearly the same words. Watch for that phrase.
Where to find it in a filing
The notice shows up as an 8-K under Item 3.01, "Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing." The SEC's Form 8-K instructions require it within four business days unless specified otherwise. Our guide to reading an 8-K covers the other items. Inside a 3.01, search for:
- "5450(a)(1)" or "5550(a)(2)," which tells you the tier.
- The deadline date, usually written "until [date]."
- "additional 180" or "second compliance period," which tells you which lap the company is on.
- "reverse stock split, if necessary," the stated plan.
- "Hearings Panel" or "Staff Delisting Determination," which means the compliance periods are over.
Then check the proxy (DEF 14A) for a reverse split proposal and its ratio range. Ratio mechanics live in our reverse stock split explainer.
How the end usually comes
- Organic compliance: ten business days at $1.00 or more, like Bridgeline in June 2026.
- Transfer to the Capital Market for a second period, like Accuray in August 2026.
- Reverse split: the blunt instrument, now limited by the one-year and 250-to-1 rules.
- Delisting: a Staff Delisting Determination, an appeal to the Hearings Panel (which can grant up to 180 days under Rule 5815(c)(1)(A)), and possibly OTC trading while it's pending.
The distance-to-$1 math, and the common mistake
Powerus ($PUSA) makes a clean illustration of the arithmetic, and only that. It closed at $1.60 at the November 4, 2026 close, and its EDGAR 8-K list for 2026 shows no Item 3.01 filing. Arithmetic: $1.60 is 60% above $1.00. And a single close under $1 starts nothing on its own: the rule counts 30 consecutive business days below it before any notice. Readers following the stock can start with our Powerus post-merger numbers.
The common mistake is treating a deficiency notice as a delisting, or treating a cure as a fix. Bridgeline cured in June 2026 and was back on notice by October.
NYSE's version, briefly
NYSE's Section 802.01C flags a stock whose average closing price is below $1.00 over 30 consecutive trading days. It gives six months to restore both the closing price and the 30-day average above $1.00. An SEC order published August 18, 2026 approves an amendment, effective July 1, 2027, to suspend immediately any NYSE stock that closes below $0.25 on any trading day.
Trader checklist
- Find the Item 3.01 8-K and write down the notice date and the deadline.
- Note the tier rule and whether this is the first or second period.
- Check for a reverse split in the past year or a cumulative 250-to-1 in two years; either removes the cushion.
- Watch the $0.10 line: ten business days at or below it means immediate suspension.
- Read the proxy for a split proposal and the meeting date.
More small-cap mechanics are on the I'M A STOCK TRADER homepage.
Bull/Bear Verdict
Bull Case: The bid-price clock is one of the few catalysts in small caps that comes with filed dates. Notice date, deadline, second period and meeting date are all on EDGAR, so a trader can map when a company has to act.
Bear Case: A notice tells you about price, not about the business, and a cure can be temporary, as Bridgeline's June-to-October 2026 round trip shows. The post-2024 rules also shrink the room for repeat splitters, so old assumptions about how long a sub-$1 stock can stay listed don't hold anymore.
FAQ
How long can a stock trade below $1 on Nasdaq?
Thirty consecutive business days below $1.00 triggers the notice, followed by 180 calendar days to cure. A Capital Market company that meets the conditions can get a second 180 days. After that, a Hearings Panel can grant up to 180 more, but a company that failed its second period is suspended from Nasdaq during the appeal under Rule 5815(a)(1)(B)(ii)d.
How does a company regain compliance with the minimum bid price?
Its closing bid must be $1.00 or higher for at least 10 consecutive business days within the compliance period. Staff can extend that window under Rule 5810(c)(3)(H).
Does a reverse split always fix a bid price deficiency?
No. Under Rule 5810(c)(3)(A)(iv), a company that falls below $1.00 within one year after a reverse split gets no compliance period. A split that pushes the company below another standard, such as Publicly Held Shares, keeps the bid deficiency open until both are cured.