Delisted

To be 'delisted' is to have a security, such as a stock, removed from being traded on a stock exchange. This can happen for several reasons, including failing to meet listing requirements like minimum share price or market capitalization, bankruptcy, mergers and acquisitions, or voluntary decisions by the company. Delisting often leads to a decline in the stock's value, reduced liquidity, and limited investment opportunities for shareholders. The process varies by exchange but involves notification and a period for appeal.

Delisted meaning with examples

• After consistently trading below the minimum price threshold, the struggling technology company's stock was delisted from the NASDAQ. Investors who held shares faced significant losses, as the stock became less accessible and less liquid. The delisting reflected the company's financial difficulties and eroded investor confidence. Regulators and exchange officials continue to look at the situation and consider the next steps for the company.
• Following the acquisition by a larger corporation, the target company's shares were delisted from the New York Stock Exchange. This was a standard procedure in such mergers, and shareholders received cash or shares in the acquiring company in exchange for their holdings. The former company and the acquiring company's team both worked hard to complete the acquisition successfully and to avoid any issues.
• Due to its bankruptcy filing and subsequent restructuring, the airline was forced to have its shares delisted. Shareholders had little opportunity to recover their investment, as the company’s assets were used to satisfy creditors. This delisting underscored the devastating consequences of financial distress. The airline had been one of the world's leading carriers before going into administration.
• After several years of struggling to comply with stringent listing rules, the small pharmaceutical company's stock was delisted from the London Stock Exchange. The news caused the stock's market value to plummet, greatly impacting the investors. The company, still trying to get through regulatory bottlenecks, now faces a challenge getting a return to being listed on the stock exchange.
• Following a major accounting scandal and investigations, the board decided to have the company’s shares delisted from the exchange to protect the company's reputation and to protect shareholders, despite an initial protest from many institutional shareholders. This involved transitioning trading to an over-the-counter market. They also issued a statement apologising for any distress caused.