A delisting is scary. And frankly, you generally have no business owning a stock facing delisting because, with few exceptions, a company that fails the continued listing requirements is almost always on the express train to bankruptcy.
RadioShack then filed for Chapter 11 bankruptcy protection days later. Here are some general rules you should follow with respect to companies at risk of delisting or already trading over the counter:. However, Siemens actually provides a few examples of what to expect during a delisting. But all of these stocks have one thing in common: They are blue-chip companies subject to a high standard of financial regulation in their home markets Germany, Switzerland and Germany, respectively.
For these companies, the U. As a general rule, stay away from companies at risk of delisting. Most already have a host of potholes to deal with. If a corporation fails to meet these requirements, its stock may be delisted and stops trading on an exchange. Delisted stocks still entitle their shareholders to all the rights, such as ownership, voting and ownership transferability, but become virtually impossible to trade as there is no more orderly market for them.
If a stock does not trade, there is no mechanism to establish its fair market price. An illiquid stock with no established market price is as good as worthless — unless you own the entire company.
Delisting does not happen overnight. A corporation gets a warning of non-compliance and a deadline to fix the problem. In many instances it can take steps to bring the stock back into compliance; in other instances, it may fail to comply and its stock will be delisted and stop trading. The Core. The Edge. Open RAN. Private Networks. The Cloud. White Papers. Market Leader Programs Internet for the Future.
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