What Is Delisting?
Delisting is the process of removing a security from an exchange. This can occur for various reasons, such as when a company goes bankrupt or fails to meet certain listing requirements. Delisted securities are no longer traded on the exchange and investors must find alternative ways to trade them if they wish to do so.
The delisting process typically begins with a notification from the exchange that it intends to delist the security in question. The issuer then has an opportunity to appeal this decision before it becomes final. If successful, trading may continue; however, if unsuccessful, trading will be halted and all outstanding orders cancelled prior to delisting taking effect. Afterward, investors who still hold shares of the now-delisted security have limited options for selling their holdings since there is no active market for these securities anymore.