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What happens if a stock is delisted?

Some companies opt to go private or get taken over by companies that want them out of the public eye. Stocks that fail to meet the exchange’s requirements risk being kicked out and delisted. The consequences of delisting are significant, and some companies strenuously avoid being delisted.

What is a stock delisting?

Delisting is when a company’s stock is removed from a stock exchange such as the NYSE or the Nasdaq. A delisting may occur for several different reasons. It could be the result of the company going private, declaring bankruptcy, merging with another company or failing to meet the exchange’s listing requirements.

What should investors know about stock delistings?

Here’s what investors should know about stock delistings. What is delisting? Delisting is when a company’s stock is removed from a stock exchange such as the NYSE or the Nasdaq. A delisting may occur for several different reasons.

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