After a series of high-profile frauds and stock collapses by Chinese companies that went public in the United States using reverse mergers, major U.S. stock exchanges are putting new rules in place to make such maneuvers more rigorous and respectable.
The New York Stock Exchange and Nasdaq recently added new rules that require companies wanting to go public via a reverse merger to file an annual report with the Securities and Exchange Commission, list for at least one year on an over-the-counter or a regulated foreign exchange, and keep a minimum share price.
