NASDAQ Intends to Eliminate Press Releases Where Issuer Files 8-K
NASDAQ has filed a proposed rule change that would allow listed companies to rely on a filed 8-K to disclose certain events and avoid having to issue a companion press release. The events cited include failure to meet a listing standard, receipt of a public reprimand, and changes in terms of a listed unit. NASDAQ believes that “investors have come to rely upon Form 8-K disclosure” and that “Form 8-K disclosures are readily available to investors and the information reported in them is widely reported on by the news media.”
OUR TAKE: This will help listed closed-end funds that have 8-K filing requirements. From the buy-side perspective, it may make it more difficult to receive relevant information about issuers.