Effect of Delisting on Shareholders
When a stock is delisted, the company will be removed from any exchanges it was trading on, and investors will no longer be able to buy or sell company shares. Delisting of shares may lead to an increase in value of other securities listed. 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.
Voluntary Delisting and Shareholder Options
In the case of voluntary delisting, listed companies voluntarily opt for permanent removal of securities from the stock exchange where the company decides to go private. Delisting a stock does not affect shareholders’ ownership. The key change is that shareholders of delisted companies will not be able to sell their shares on any exchange. If you wanted to try buying or selling delisted company shares, you would have to look for buyers and sellers outside the market.
Trading and Investment Considerations When a Stock is Delisted
A company is ‘delisted’ when it’s removed from an exchange, like the New Zealand Stock Exchange. There are a few reasons why a company might delist. If you hold shares of a company that got delisted, there is no need to panic. While you cannot sell the shares in the public market, you still have other options.