delist

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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 ?
The increased number of companies that have delisted in recent years is cited as evidence that the rising costs of regulatory compliance are driving companies to foreign stock exchanges in an effort to escape intrusive and expensive disclosure and other legal requirements after passage of the Sarbanes-Oxley Act of 2002 (SOX).
At that time, the Committee said a record number of foreign companies had delisted from the NYSE as of October 2007.
As previously reported by the Daily News, Nasdaq officials notified the company last month that its stock would be delisted Dec.
Volpe Brown Whelan analyst Andrew McPherson says while it's "always disappointing when companies are delisted, it's probably in their best interest to get out of the limelight and spend time fixing whatever needs work.
As of Friday, 162 or 80% of the 193 firms that delisted or applied for delisting since April did so because their shares are traded on multiple exchanges, while the remainder were due to such reasons as bankruptcies and failure to meet listing standards.
In the event that its stock is delisted from the Pacific Stock Exchange, the company is currently investigating the trading of its stock through the NASD Bulletin Board or the National Quotation Bureau Pink Sheets.
There can be no assurance, however, that the Panel will grant CFNB's request for continued listing, or that CFNB's common stock will not be delisted.
Glaxo stock will be moved on July 1 to the post for stocks under special supervision for delisting, then to the delisted stocks post on July 8, the TSE said.
The delisted option classes include two stock options currently listed exclusively on CBOE: Precision Castparts Corp.
If Penn Octane's common stock is delisted from the NASDAQ Capital Market, Penn Octane will continue to file all required reports with the Securities and Exchange Commission and intends to seek quotation in the OTC Bulletin Board through a market maker.
If Saflink is not eligible for this additional compliance period, it will be provided written notice that its securities will be delisted.
DALLAS -- Second graph, first sentence of release should read: xxx or filing its Annual Report on Form 10-K, by April 25, 2006, it is not anticipated that the Company's shares of common stock will be delisted on April 27, 2006.