Should Nasdaq Clean Up Low-Transparency Penny Stocks to Protect Market Trust?

In South Korea, the president and regulators have been pushing stock-market reforms to strengthen market credibility, improve disclosure, and protect minority shareholders.

Part of that effort is to remove or pressure weak, low-quality listed companies that damage investor trust.

The same principle should apply to Nasdaq over the long term.

If penny-stock structures with weak transparency, repeated dilution, offshore entities, reverse splits, and retail exit-liquidity patterns are allowed to remain listed and promoted, public trust in the market will eventually be damaged.

Protecting retail investors is not just about warning people after they lose money.

It is about preventing low-transparency structures from operating inside regulated public markets in the first place.