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 ?
Likewise, the officers of the delisted firm are also banned from holding board positions from any listed firms.
14) Research indicates that delisted firms are associated with:
Therefore, unless the company files an appeal, its stock will be delisted from the Nasdaq and placed on the OTC Bulletin Board, an exchange with less stringent listing requirements and, thus, fewer traders.
The ratio of delisted firms to the total number of listed companies came to 23.
If Saflink is not provided an additional 180-day period to comply with such requirements, its common stock could be delisted from the Nasdaq Capital Market and it may trade on the over-the-counter market, which may be a less liquid market.
Since the Company anticipates requesting a hearing with the Nasdaq Hearings Panel, 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.
According to the notice of delisting, HealthTronics' common stock will be delisted from the Nasdaq Stock Market on April 12, 2006 unless HealthTronics requests a hearing before a Nasdaq Listing Qualifications Panel in accordance with the applicable Nasdaq Marketplace rules.
GRAPEVINE, Texas -- American Locker Group Incorporated (Nasdaq:ALGI) announced today that it has provided a voluntary delisting notice to the NASDAQ Stock Market and requested that its common stock be delisted from the Nasdaq Stock Market as of the opening of business on April 3, 2006.
If the Company's common stock is delisted from the Nasdaq National Market, the liquidity of its common stock would be adversely impacted and the Company may experience other adverse consequences resulting from the delisting and the failure to file periodic reports.
On the Copenhagen Stock Exchange two companies were listed and one company was delisted.
If it is not eligible for this additional compliance period, Saflink will be provided written notice that its securities will be delisted.
Xcyte, the "Company") (Nasdaq:XCYT) (Nasdaq:XCYTP) received a notice from The Nasdaq Stock Market indicating that the Company is not in compliance with Nasdaq Marketplace Rule 4450(a)(5) (the "Minimum Bid Price Rule"), and as a result the Company's common stock will be delisted at the opening of business on December 15, 2005 unless the Company requests a hearing in accordance with the Nasdaq Marketplace Rules.