What Does Delisting on the Stock Market Mean?
Once a stock is delisted, it can take days or longer for shares to begin trading in the OTC:BB market.
Once a stock is delisted, it can take days or longer for shares to begin trading in the OTC:BB market.
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3. Stock Delisting Process
For publicly traded companies it can be a status symbol to have their equity shares listed on a major stock exchange, such as the New York Stock Exchange Euronext or Nasdaq. Listed companies have met a variety of criteria, including financial criteria, established by an exchange, but there is no guarantee the exchange will continue to serve as a stock's trading platform. A stock can become delisted from a major exchange for failing to maintain exchange standards; that does not mean the company is delisted from the entire stock market. Shares may continue to trade in the over-the-counter bulletin board (OTC:BB) market where there are no listing standards.
Stock Price.
If a company's stock falls below $1 per share for longer than 30 days, that stock is in danger of losing its listing on the NYSE Euronext or Nasdaq exchange. Fortunately for companies, once a stock falls into the danger price zone, there is still time for the stock price to recover. A letter of notification is sent to company officials, who have another six months for the stock to strengthen to above $1 before shares are delisted from either major U.S. exchange.
