Delist

To officially remove a security, such as a stock or bond, from a stock exchange or financial market. This action signifies that the security is no longer traded on that particular venue. Delisting can occur for a variety of reasons, including failure to meet listing requirements, bankruptcy, mergers, acquisitions, or voluntary decisions by the issuing company. The process often involves notifying investors and establishing a mechanism, if possible, for shareholders to dispose of their holdings. It fundamentally changes the security's accessibility for trading, potentially impacting its liquidity and value. The implications can range from minimal impact to significant losses, depending on the circumstances.

Delist meaning with examples

• Due to persistently low trading volumes and failing to meet minimum share price requirements, the struggling tech company faced delisting from the NASDAQ. The company worked to avoid it, but efforts were unsuccessful and shareholders braced for the impact on their investments. Some investors initiated strategies to limit financial damage.
• Following its acquisition by a larger conglomerate, the target company's stock was slated for delisting from the New York Stock Exchange. This process meant existing shares would either be converted to shares of the acquiring company or be bought out at a predetermined price, closing an era in its market history.
• The Securities and Exchange Commission (SEC) intervened to investigate the company, and with the investigation ongoing, it announced it would delist the stock from the regulated exchange pending the outcome of the SEC's investigation, to ensure compliance with all regulations in place.
• After repeated warnings about governance issues and financial reporting inconsistencies, the exchange moved to delist the company's shares. This abrupt decision by the exchange left investors scrambling to understand their options and potentially facing considerable financial losses.