Business, Legal & Accounting Glossary
To remove a stock from an exchange, usually due to a violation or failure to meet certain financial requirements.
To remove from an official register or list.
A public company is said to delist if it ceases trading of its shares on a public exchange. A company can delist voluntarily for a few reasons. For example, some public companies delist upon going private in a leveraged buyout, or LBO. A company can also desist its shares because another firm is acquiring it. A company may be forced to delist or be delisted, by the listing exchange. Every exchange has its own rules for the circumstances under which it might delist a company. Being forced to delist is a sign of serious problems at a company. Having a minimum number of shareholders and a minimum amount of revenue are examples of criteria imposed by the exchange. If a company is forced to delist, its shares will often be traded over the counter (OTC).
When the company failed to file its financial statements, it was delisted by the Stock Exchange.
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This glossary post was last updated: 29th October, 2021 | 0 Views.