When large cap stocks fall below $5 they become considered a penny stock. Many stocks this year have fallen below the $5 mark, and several have fallen below $1. As penny stocks these comapnies become less likely to be held in large portfolios. Citigroup is almost certainly a corner stone in many large portfolios. So, not only has Citigroups failure produced tremendous losses for these portfolios, they also have to sell their positions if they fall below$5. As such, I would expect to see continued pressure on Citigroups stock. Not to mention the company has been nothing but trouble since the financial crisis set in.
"Most institutional investors—pension funds, endowments and the like—are prohibited from owning stock worth less than $5."
Citigroup joins the ranks of several other failed stocks.
AIG, GNW, S, FRE, FNM, Ford, and GM