Delisting
Delisting is the process of removing a company’s shares from a stock exchange. This can happen for a variety of reasons, such as failing to meet listing requirements or going private. When a company is delisted, its shares are no longer available for trading on the exchange.
There are several consequences of delisting for both the company and its shareholders. For the company, delisting can make it more difficult to raise capital and can reduce its visibility in the market. Shareholders may also suffer losses if the stock price declines after delisting.
One example of delisting is when a company fails to meet the financial requirements of a stock exchange. This can happen if the company’s stock price falls below a certain threshold or if it fails to file required financial reports. In these cases, the exchange may choose to delist the company’s shares.
Another example of delisting is when a company goes private. This means that the company’s shares are no longer traded on a public exchange and are instead held by a small group of investors. This can happen for a variety of reasons, such as a merger or acquisition.
Overall, delisting can have significant implications for both companies and investors. It is important for both parties to be aware of the reasons for delisting and to understand the potential consequences.
For more information on delisting, you can visit Wikipedia.