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.

  1. I own shares of a company that just received a delisting notice from Nasdaq. Does ...

    Let's start by walking through the reasons for listing requirements and what happens when a company's stock is delisted from ... Read Answer >>
  2. 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 >>
  3. Does all common stock trade on exchanges?

    Find out about types of common stock that trade on stock exchanges and types that trade in varied over-the-counter (OTC) ... 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. What are reverse stock splits?

    A reverse stock split is a corporate action in which a company reduces the number of shares it has outstanding by a set multiple. ... Read Answer >>
Related Articles
  1. Investing

    Digging For Profitable Delistings

    Deregistration can provide opportunities for savvy investors. We'll show you how to cash in.
  2. 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.
  3. 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.
  4. Small Business

    The Fall From Glory: Delisting Brands

    We examine the intentions and consequences of having a brand delisted.
  5. Investing

    Violin Stock Hits 52-Week Low (VMEM)

    Violin Memory’s stock has plunged over the last 52 weeks, stoking fears that the NYSE could soon delist its shares. Here's the latest on VMEM stock.
  6. Investing

    Why Companies Change Exchanges

    Companies don't elect to leave an exchange so much as they're asked. Find out why.
  7. Investing

    Is Violin Memory on the Verge of Delisting? (VMEM)

    Violin Memory's stock has fallen nearly 50% since mid-September. What will the company do to prevent being delisted from the New York Stock Exchange?
  8. Investing

    Should You Care That Samsung Doesn't Need U.S. Investors?

    Many international companies see no need to have fully-listed shares trading on U.S. exchanges.
  9. Investing

    Why Do Companies Care About Their Stock Prices?

    Read on to learn more about the nature of stocks and the true meaning of ownership.
  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. Admission Board

    The representatives of a particular stock exchange who determine ...
  5. Listed Security

    A financial instrument that is traded through an exchange, such ...
  6. Listed

    Being included and traded on a given exchange. Most exchanges ...
Hot Definitions
  1. Perkins Loan

    A loan program that provides low-interest student loans to undergraduate and graduate students who demonstrate exceptional ...
  2. Wealth Management

    A high-level professional service that combines financial/investment advice, accounting/tax services, retirement planning ...
  3. Assets Under Management - AUM

    The market value of assets that an investment company manages on behalf of investors. Assets under management (AUM) is looked ...
  4. Subprime Auto Loan

    A type of auto loan approved for people with substandard credit scores or limited credit histories. There is no official ...
  5. Racketeering

    A fraudulent service built to serve a problem that wouldn't otherwise exist without the influence of the enterprise offering ...
  6. Federal Debt

    The total amount of money that the United States federal government owes to creditors. The government's creditors include ...
Trading Center