Avid Technology, the owners of Pro Tools, have announced the receipt of a delisting letter from NASDAQ.

We’re not financial specialists, so here is what Yahoo answers say it means for mere mortals…

“To get a stock listed on a major exchange like the NYSE or Nasdaq, a company must meet the minimum standards required by the exchange. On the Nasdaq, for example, a company must pay certain fees, meet minimum standards such as minimum stockholder’s equity, a minimum share price, and a minimum number of shareholders, etc.

The rules for delisting depend on the exchange. On the Nasdaq, the delisting process may be triggered if a company trades for 30 consecutive business days below the minimum bid price or market cap. A deficiency notice is then sent to the company.

The company will be given a number days to get back up to standard. Exchanges are typically strict about enforcing their standards because most healthy, credible public companies should be able to meet such requirements on an ongoing basis. However, they rules are sometimes “bent” such as after September 11, 2001, the Nasdaq announced that it was implementing a three-month moratorium on price and market value listing requirements.” Read more here

If you have Avid stock then if you have concerns we suggest you seek the advice of a qualified financial specialist.