Super Micro Computer, a server company, may be kicked off the Nasdaq stock exchange soon. This could happen if the company does not fix its issues by Monday. Super Micro is late in filing its year-end report to the Securities and Exchange Commission (SEC). The company also needs to find a new accounting firm. Many investors expected more information when Super Micro shared some financial results last week, but they did not get it.
The Nasdaq warned Super Micro on September 17 about the risk of delisting. The company has 60 days to submit a plan showing how it will meet Nasdaq rules. If the plan is good, Super Micro could get 180 more days to file its report.
Super Micro has been popular due to the rise in artificial intelligence (AI). However, after some bad news and claims of accounting issues, its stock has dropped significantly. In fact, the stock price is back to what it was in May 2022.
Super Micro aims to stay listed and plans to submit its compliance plan on time. It hopes to regain trust from investors and customers despite the current challenges.
Vocabulary List:
- Delisting /dɪˈlɪstɪŋ/ (noun): The removal of a security from a stock exchange.
- Compliance /kəmˈplaɪəns/ (noun): The act of conforming to rules or standards.
- Securities /sɪˈkjʊərɪtiz/ (noun): Financial instruments that represent an ownership position or a creditor relationship.
- Challenges /ˈtʃælɪndʒɪz/ (noun): Difficulties that require a solution.
- Investor /ɪnˈvɛstər/ (noun): A person or entity that allocates capital with the expectation of a future financial return.
- Accounting /əˈkaʊn.tɪŋ/ (noun): The process of recording financial transactions pertaining to a business.
