Abstract: In August 2021, the Securities and Exchange Commission approved Nasdaq's proposed rules related to diversity. The rules' aim is for most Nasdaq-listed firms to have at least one director self-identifying as female and another self-identifying as an underrepresented minority or LGBTQ+. While Nasdaq claims these rules will benefit investors, the empirical evidence provides little support for the claim that gender or ethnic diversity in the boardroom increases shareholder value. In fact, rigorous scholarship--much of it by leading female economists--suggests that increasing board diversity can actually lead to lower share prices. The implementation of Nasdaq's proposed rules thus may well generate risks for investors.