A:

If a company has been delisted, it is no longer trading on a major exchange, but the owners of the company shares are not stripped of their status as owners. However, delisting often results in a significant or total devaluing of a company's share value. Therefore, although a shareholder's ownership of a company does not decrease after a company is delisted, that ownership may become worth much less or, in some cases, it may lose its entire value.



For further reading, see The Dirt On Delisting.



RELATED FAQS
  1. What are the rules behind the delisting of a stock?

    The criteria to remain listed on an exchange differs from one exchange to another. On the New York Stock Exchange (NYSE), ... Read Answer >>
  2. What happens to my options in a company that is acquired?

    I hold some open option positions in a company which was de-listed a couple days ago due to ... Read Answer >>
  3. Am I obligated to sell my stocks if I want to keep them longer?

    If it's time to sell the stocks and I bought 100 shares but I'm not willing to sell them yet. Do I have to sell them? Or ... Read Answer >>
  4. What are the listing requirements for the Nasdaq?

    Major stock exchanges, like the Nasdaq, are exclusive clubs - their reputations rest on the companies they trade. As such, ... Read Answer >>
  5. How does the law of supply and demand affect the stock market?

    Find out how the law of supply and demand affects the stock market, and how it determines the prices of individual stocks ... Read Answer >>
  6. What happens if I maintain a short position in a stock that is delisted and declares ...

    The short seller owes nada. Nil. Zip. Zero.When you short sell you borrow the shares, sell them on the market, and then collect ... Read Answer >>
Related Articles
  1. Investing

    The Dirt On Delisted Stocks

    Listed securities are "the cream of the crop". Find out how a firm can lose that status and why you should be wary.
  2. Investing

    Why Companies Delisted from Indexes Can Be a Buy (OI)

    Learn about a value-investing strategy that takes advantage of stocks that may represent a bargain when they're delisted from a benchmark index.
  3. Markets

    Chinese Companies Are Leaving U.S. Markets

    Chinese companies are pulling out of U.S. exchanges and that may be a good thing.
  4. Markets

    Investigating The Stock Premium Puzzle

    The Three-Factor Model tries to demystify the baffling small-cap and value return premiums.
  5. Markets

    Why Do Companies Care About Their Stock Prices?

    Read on to learn more about the nature of stocks and the true meaning of ownership.
  6. Managing Wealth

    Introduction To STRIPS

    STRIPS provide an alternative form of bond for fixed-income investors who need definite cash flows at specific times. Read the article to find out how.
  7. Markets

    Getting To Know The Stock Exchanges

    Here are the answers to all the questions you have about stock exchanges but are too afraid to ask!
  8. Managing Wealth

    Why Successful Business Owners Sell Out

    Learn the motives that drive companies into the arms of an acquirer.
  9. Investing

    Knowing Your Rights As A Shareholder

    We delve into common stock owners' privileges and how to be vigilant in monitoring a company.
  10. Investing

    How Does Dilution Work?

    Dilution refers to the reduction in the percentage equity ownership of a company due to additional equity being issued to other owners.
RELATED TERMS
  1. Delisting

    The removal of a listed security from the exchange on which it ...
  2. Relisted

    The return to listed status for a stock after having been delisted ...
  3. SEC Schedule 13E-3

    A schedule that must be filed with the Securities and Exchange ...
  4. Defunct

    The condition of a company, whether publicly traded or private, ...
  5. Admission Board

    The representatives of a particular stock exchange who determine ...
  6. Listed

    Being included and traded on a given exchange. Most exchanges ...
Hot Definitions
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  4. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  5. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  6. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
Trading Center