Dell faces NASDAQ delisting hearing
profdlp
The Holy City Of Westlake, Ohio
NASDAQ has sent Dell a Staff Determination Letter stating that they are not in compliance with NASDAQ's listing requirements. This is the first step in delisting the company from the NASDAQ stock exchange. Delisting would mean that Dell stock could no longer be publicly traded on the NASDAQ market.
The problem arises from Dell's failure to file a necessary financial form with the U.S. Securities and Exchange Commission. The U.S. Securities and Exchange Commission's website has this to say about the document in question:
"The annual report on Form 10-K provides a comprehensive overview of the company's business and financial condition and includes audited financial statements."
Last September, Dell issued a statement stating that early investigations "have indicated the possibility of misstatements in prior period financial reports, including issues relating to accruals, reserves and other balance sheet items that may affect the company's previously reported financial results."
For any publicly traded company, accurate financial reports are a must. Investors are entitled to know what they are buying, and any hint of impropriety would have an obviously negative impact. It will be interesting to see how all of this unravels.
The problem arises from Dell's failure to file a necessary financial form with the U.S. Securities and Exchange Commission. The U.S. Securities and Exchange Commission's website has this to say about the document in question:
"The annual report on Form 10-K provides a comprehensive overview of the company's business and financial condition and includes audited financial statements."
Last September, Dell issued a statement stating that early investigations "have indicated the possibility of misstatements in prior period financial reports, including issues relating to accruals, reserves and other balance sheet items that may affect the company's previously reported financial results."
For any publicly traded company, accurate financial reports are a must. Investors are entitled to know what they are buying, and any hint of impropriety would have an obviously negative impact. It will be interesting to see how all of this unravels.
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Comments
Unless is it's backdating stock options at Apple.
If the stock owners truly believe in a company, 'bad' news will often be dismissed as insignificant.
Not if the "bad" news is that their profits are not what they appeared to be.