When a company is delisted, its stock no longer trades on one of the major stock exchanges.
In a direct sense, nothing happens to a shareholder when delisting occurs.
The shareholder still owns the same percentage of the company as before, and he is free to sell the shares to any willing buyer.
Can a delisted stock come back?
In case a company in which you hold shares gets delisted, you have two options. Either you can hold on the shares and wait for relisting or exit the shares when the company gives an offer price to buyback before delisting from the stock exchange. Promoters can, however, pay a higher price for the share if they wish so.
What does delisting mean for shareholders?
“Delisting” is generally used in a negative way, for when companies no longer meet the requirements to be listed on an exchange, and are removed either voluntarily or involuntarily. However, delisting technically just means the removal of a listed stock from its exchange, and there are a few reasons that can happen.
What happens if a stock gets delisted on Robinhood?
What happens if I own a stock that’s delisted? If a stock that you own delists, you’ll be able to sell it in the market, but you won’t be able to purchase additional shares. Once a stock delists, the in-app market data will no longer reflect the current trading price.
Can you sell a delisted stock?
If you own delisted shares, you can still sell them on the Over-the-Counter Bulletin Board (OTCBB) or on the Pink Sheets, which have more relaxed regulations and few listing requirements. OTC trading is volatile, and this level of risk is typically not suitable for beginning investors.