Rule 500

Rule 500

On the New York Stock Exchange, a rule regarding the voluntary delisting of a publicly-traded company. If the management of a company wishes to delist from the NYSE, it must have the consent of at least two thirds of shareholders, with no more than 10% of shareholders opposing.

Rule 500

A New York Stock Exchange rule that sets requirements for listed companies that wish to delist their stock from the exchange. Companies cannot delist and move trading elsewhere unless at least two thirds of the shares are cast in favor of the move. In addition, no more than 10% of the shares can be cast in opposition to the move.
References in periodicals archive ?
[83] Until recently, the NYSE retained its Rule 500 that made it the financial equivalent of the "roach motel." Under former Rule 500, it was very difficult for a company to delist from the NYSE because, among other requirements, Rule 500 conditioned de-listing on a super-majority vote of its shareholders.
18, 1998) (formal request for approval by the SEC to permit amendment of Rule 500).