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delist
(redirected from delists)

   Also found in: Dictionary/thesaurus 0.02 sec.
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.


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Furthermore, so as to provide adequate notice to shareholders of the potential diminution of liquidity for their shares which may occur when Nasdaq delists the stock automatically upon the filing of Form 15 with the SEC, the Board has instructed counsel not to file this form before Friday, August 30.
Nasdaq delists a company when its stock price falls below $1 for 30 consecutive trading days.
On a related matter, the company believes that until the time Nasdaq delists the company's securities, Nasdaq will continue the trading halt invoked by Nasdaq on April 15, 1999.
 
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