delist


Also found in: Dictionary, Thesaurus, Wikipedia.

Delisting

The removal of a stock from trading on an exchange. Delisting occurs when a publicly-traded company violates the exchange's rules, or, more commonly, when the company ceases to meet listing requirements. For example, when a company's market capitalization falls below a certain level, it is in danger of delisting.

delist

To drop a security from trading on an organized exchange. Delisting may occur for a number of reasons including failure to meet an exchange's standards or placement of a new listing on another exchange. Compare list.
Case Study In early 2001, Nasdaq informed Drkoop.com, a one-time high-flying Internet company, that the firm's stock was subject to being delisted from the Nasdaq Stock Market. At the time of the notice Drkoop.com stock was trading at approximately 20¢ per share, well below the $1 per share required to continue trading on the Nasdaq. Delisting can have a serious negative impact on a firm's ability to raise equity capital, since it is likely to reduce liquidity and increase the bid-ask spread quoted by dealers. Many individual investors avoid buying a delisted stock as trading volume dries up. Negatives associated with delisting are likely to cause a major decline in the market price of a stock that most likely has already experienced a major price decline. Nasdaq, which delisted 240 companies in 2000, often begins the delisting process when a stock's bid price falls below $1 per share for 30 consecutive trading days. The firm subsequently has 90 calendar days to boost its stock price above $1 per share for 10 consecutive trading days. The New York Stock Exchange has a similar price requirement plus additional minimums regarding market capitalization and shareholder equity.
References in periodicals archive ?
regulations, primarily SOX-related, have created incentives for firms to list IPOs on foreign markets or to delist from U.
The Trust has decided to voluntarily delist because its shares are currently held by less than 300 record holders and are thinly traded.
The NYSE's application to the Securities and Exchange Commission ("SEC") to delist Wolverine's common stock is pending the completion of applicable procedures, including Wolverine's right to request a review of this determination by a Committee of the Board of Directors of the NYSE.
The Tokyo Stock Exchange (TSE) said Wednesday it will delist Glaxo Wellcome PLC of Britain from its foreign stock section around Oct.
That decision angered opponents of the squirrel's "threatened" status, who said it makes it harder to delist a species than it is to get it listed.
The company has been informed by the Exchange that if a decision is reached at the July 7, 1992, meeting to delist the company's stock, trading of the company's stock on the Exchange would cease as of July 14, 1992, and delisting of the stock would be completed by mid-August of 1992.
LEUVEN, Belgium -- ICOS Vision Systems Corporation NV (NASDAQ and Euronext: IVIS), a world leader in vision solutions, announced today its intent to voluntarily delist its common shares from the NASDAQ Global Market and terminate its U.
TOKYO:6764)(NASDAQ:SANYY) resolved to submit applications to voluntarily delist the company's shares from the Nagoya Stock Exchange, Fukuoka Stock Exchange, and Sapporo Securities Exchange and to voluntarily delist the company's American depositary shares (ADSs) from NASDAQ.
At that time, Saflink would have the right to appeal Nasdaq's determination to delist its securities to a listing qualifications panel, which would stay the effect of the delisting pending a hearing on the matter before the panel.
AMEX: GRN), a leading recycler of over 20 million scrap tires per year in the United States, today announced it received notice on April 25, 2006 from the American Stock Exchange (the "Exchange") indicating its intention to initiate proceedings to delist GreenMan's common stock.