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. How does a company switch from one stock exchange to another?

    A publicly traded company can, in fact, switch to a stock exchange that it believes will be favorable to its financing efforts. ... Read Answer >>
  3. 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 >>
  4. 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 >>
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

    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. Investing

    NYSE Moves to Delist Violin Memory (VMEM)

    The New York Stock Exchange informed the flash storage firm that it will delist its stock over market capitalization standards. Here's what happens next.
  4. Investing

    10 Most Famous Public Companies That Went Private

    Here’s a list of the most popular listed companies that went private in recent decades.
  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

    New Leveraged Oil ETFs Coming Soon (UWTI, DWTI)

    VelocityShares is launching two new leveraged oil funds that will replace its recently delisted funds.
  8. Investing

    New York REIT to Liquidate (NYRT)

    New York REIT plans to liquidate and delist from the New York Stock Exchange.
  9. Small Business

    What is a Private Company?

    A private company is any corporation that does not have shares publicly traded in the equity markets.
  10. Small Business

    Why Successful Business Owners Sell Out

    Learn the motives that drive companies into the arms of an acquirer.
RELATED TERMS
  1. SEC Schedule 13E-3

    A schedule that must be filed with the Securities and Exchange ...
  2. Listed Security

    A financial instrument that is traded through an exchange, such ...
  3. Admission Board

    The representatives of a particular stock exchange who determine ...
  4. SEC Form 25

    A notification given to the SEC by a national securities exchange ...
  5. Callable Common Stock

    A security that represents ownership in a corporation that has ...
  6. Public Company

    A company that has issued securities through an initial public ...
Hot Definitions
  1. Restricted Stock Unit

    Compensation offered by an employer to an employee in the form of company stock. The employee does not receive the stock ...
  2. Operating Ratio

    A ratio that shows the efficiency of a company's management by comparing operating expense to net sales. Calculated as:
  3. Expense Ratio

    A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual ...
  4. Pro Forma

    A Latin term meaning "for the sake of form". In the investing world, it describes a method of calculating financial results ...
  5. Trumpcare

    The American Health Care Act, also known as Trumpcare and Ryancare, is the Republican proposal to replace Obamacare.
  6. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
Trading Center