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 ?
While Melco backtracked and said it will no longer seek to delist its shares, stock analysts noted that its shares will be delisted anyway since its public float would fall below the required 10 percent after the tender offer.
Mr Oscar Onyema, Chief Executive Officer, NSE, said recently that companies in their life cycle would be listed, while others would be delisted over time.
The delisted political parties include Pakistan MusAlim League (FunActional) and several others.
Prominent among the parties delisted by the ECP include Muttahida Qaumi Movement-Pakistan, Muttahida Majlis-i-Amal, Pakistan Muslim League-Functional, the JUI-Sami, the Sunni Tehreek, Qaumi Watan Party, the Pakistan Muslim League-Nazriati, Sindh National Front, Bahawalpur National Awami Party, Millat Party, Aam Aadmi Party and others.
Likewise, the officers of the delisted firm are also banned from holding board positions from any listed firms.
The first part defines the profile of the companies that delisted in the stock exchange of Sao Paulo from 2006 to 2015.
Independent valuers have been empanelled by the BSE to compute the fair value of companies that are to be delisted. "Various valuation parameters are taken into account for the determination of the value at which the promoter is required to acquire the shares from the public shareholders.
EPA reviewed the environmental monitoring data submitted with MDEQ's requests and determined that both Areas of Concern were eligible to be delisted. EPA provided notice of intent to delist the two Areas of Concern to the government of Canada, tribal nations, the International Joint Commission and the general public.
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).
A company is licensed for operation in the stock market by the Capital Market Authority (CMA) according to these rules and if the company fails to adhere to a single rule, it will be delisted, El-Sherif explained.
(7) However, effective December 1st, 2004, the Government of Ontario delisted chiropractic services from OHIP eligibility with limited warning.
Newcastle-based Metnor announced its proposal to delist on March 3, 2009 and, following shareholder approval for the proposal, the company was delisted from the London Stock Exchange last month.