The Raleigh, North Carolina-based Linux vendor’s shares will continue to trade on the Nasdaq stock market until December 12, when they will commence trading on the NYSE under the symbol RHT
The move to the NYSE will help to stabilize the share price, according to Red Hat’s CFO, Charlie Peters. We believe that listing on the New York Stock Exchange will increase Red Hat’s visibility among investors, reduce trading volatility and offer more efficient pricing, he said.
Red Hat has been under considerable pressure following moves by Oracle Corp and Microsoft Corp, but its share price has always been volatile since its August 1999 IPO, responding to both good and bad news with wild swings.
That sort of response is always likely to attract day traders and those looking to make a quick buck, which in turn increases share price volatility. The move to the NYSE, which is less transparent than Nasdaq when it comes to real-time pricing information, could help to break that cycle.
