Market & Structure
Delisting
Removed from Exchange
Definition
When a stock is removed from a stock exchange
Explanation
Delisting occurs when a company no longer meets exchange requirements—due to financial troubles, fraud, or going private. Delisted stocks can become nearly worthless and very difficult to sell. Warning signs include very low stock price, missed SEC filings, and trading below $1 for extended periods.
Example
Stock trades below $1 for 30 days → Warning of potential delisting