I have a question for the board. I am having a discussion with a friend regarding the 25% rule (Nasdaq rule 11140b2) and I understand that the rule states that if the dividend is 25% or more of the pps of the underlying stock that it falls under the 25% rule. My friend perceives the rule to state that the dividend must be MORE then the pps and that if the pps was at .012 and the dividend .011 that the 25% rule does not apply since the pps is higher then the dividend.
My question to the board is this:
Does anyone know when the dividend was declared? I know that the record date was June 30th and at that time the pps was .0107 hod. One would have to go back to June 1st to have a pps that was .041 but that still would fall under the 25% rule since .011 is 27% of the (then) pps of .041. Anyway, any input is greatly appreciated.