How To Find Noncompliant Companies

The Stock of a Noncompliant Company may be at risk of delisting from the exchange where its stock is currently listed.

If a stock is delisted from its exchange, it may end up as an Over The Counter (OTC) stock, which you may or may not be able trade through your broker or may suffer from a reduction in liquidity, as it may not be able to be purchased by institutions, mutual funds, etc., you know?

Alternately, if a company is at risk of being delisted due to a low Bid Price, then they may attempt to execute a Reverse Split (RS) to bring their Bid Price back up to resolve their noncompliance issue.

If a company executed a Reverse Split (RS), they may subsequently re-offer/re-sell shares up to their authorized number of shares, causing your shares to be diluted and the stock price to typically drop, sometimes precipitously.

Therefore, it is to your advantage to be able to find companies that may currently be noncompliant and therefore at risk of being delisted and/or planning to execute a Reverse Split (RS), right?