Understanding Stock Delisting: Causes and Implications

Reported 13 days ago

Stock delisting occurs when a company's shares are removed from an exchange like the NYSE or Nasdaq, often due to failing to meet listing requirements, financial issues, or fraudulent activities. While shareholders still retain ownership, trading may shift to over-the-counter markets, leading to reduced liquidity and transparency. Understanding the reasons behind delisting is crucial for investors, particularly in cases involving bankruptcy or fraud, as it can affect their investment's value and trading conditions.

Source: YAHOO

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