Why Nio Stock Is Plunging Today
Nio (NYSE: NIO) stock crashed on Thursday and was trading down 12.3% as of 11:15 a.m. ET. It has just been named by the U.S. Securities and Exchange Commission (SEC) as one of the many stocks that could get delisted from the U.S., and the market is freaking out.
This development shouldn't have come as surprise as Nio had already forewarned it, but the stock is plunging nonetheless.
For several months now, foreign stocks have come under the scrutiny of the SEC. Under its Holding Foreign Companies Accountable Act (HFCAA), foreign companies listed in the U.S. whose audit reports are inaccessible for inspection by the U.S. authorities are liable to get their shares delisted. The SEC recently started identifying and naming such companies publicly, and it named 88 companies, including Nio, on its latest list updated just yesterday.
Source Fool.com
