Delisting

AAA

DEFINITION of 'Delisting'

The removal of a listed security from the exchange on which it trades. Stock is removed from an exchange because the company for which the stock is issued, whether voluntarily or involuntarily, is not in compliance with the listing requirements of the exchange.

INVESTOPEDIA EXPLAINS 'Delisting'

The reasons for delisting include violating regulations and/or failing to meet financial specifications set out by the stock exchange. Companies that are delisted are not necessarily bankrupt, and may continue trading over the counter.

In order for a stock to be traded on an exchange, the company that issues the stock must meet the listing requirements set out by the exchange. Listing requirements include minimum share prices, certain financial ratios, minimum sales levels, and so on. If listing requirements are not met by a company, the exchange that lists the company's stock will probably issue a warning of non-compliance to the company. If the company's failure to meet listing requirements continues, the exchange may delist the company's stock.

RELATED TERMS
  1. Relisted

    The return to listed status for a stock after having been delisted ...
  2. SEC Form 25

    A notification given to the SEC by a national securities exchange ...
  3. Unquoted Public Company

    A company with previously issued securities that are no longer ...
  4. Digits Deleted

    A designation on an exchange's ticker tape that refers to the ...
  5. Bagel Land

    A slang term that represents a stock or other security that is ...
  6. Over-The-Counter - OTC

    A security traded in some context other than on a formal exchange ...
Related Articles
  1. The Dirt On Delisted Stocks
    Investing Basics

    The Dirt On Delisted Stocks

  2. Digging For Profitable Delistings
    Investing Basics

    Digging For Profitable Delistings

  3. What are the rules behind the delisting ...
    Investing

    What are the rules behind the delisting ...

  4. How does privatization affect a company's ...
    Investing

    How does privatization affect a company's ...

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center