Delisting: Easy explanation

preview_player
Показать описание
This video will teach you everything you need to know about delisting.

#delisting #stockmarket #wallstreetmojo #financialmarkets #company

Chapters:
00:00 – Introduction
00:30 – What is delisting?
01:26 – What happens when a stock gets delisted?
02:05 – Types of delisting
02:56 – List of delisted stocks
03:36 – Advantages
04:16 – Disadvantages
04:40 – Conclusion

What is delisting?
In delisting, a company’s shares get removed from the stock exchange, barring any trading in the shares, which means that the company has been delisted from the stock exchange.

So in a delisting, it is a public company that now becomes private as its shares cannot be traded in the open market.

What happens when a stock gets delisted?
When a company’s stocks get delisted, we cannot trade them on the stock market. So that’s one thing that happens because of delisting.

Even though a company gets delisted, the shareholders keep their stake in the company. The company will also not be required to publish annual reports like listed companies. Finally, directors get control over the company, and they are less prone to a hostile takeover.

(Explained in detail in the video)

Types of delisting
Voluntary delisting
Involuntary delisting

(Explained in detail in the video)

List of delisted stocks
On 8th March 2022, NYSE delisted SCVX Corp.

On 11th March 2022, SEC delisted almost $1.1 trillion shares of Yum China, ACM Research, HutchMed, Zai Lab, and BeiGene.

Advantages
Delisted firms do not have to publish annual reports or shareholding patterns.
Private companies are no longer prone to hostile takeovers.
Private companies are also free from market speculation.
Directors retain decision-making.
Private companies are also not subject to minimum listing anymore.
Companies save on costs like listing fees and annual trading costs.

Disadvantages
Private companies cannot raise capital from the public.
Once a company gets delisted, it loses public trust and market share.
Delisting can have a negative effect on book value.
On delisting, stocks lose value, and investors lose money.

This was all about delisting. Subscribe to the channel, so you don’t miss out on the content we post regularly. Also, don’t forget to like the video.

==========================================================================
Subscribe to Our Channel –
Youtube ►
Рекомендации по теме
Комментарии
Автор

If a foreign company is delisted voluntary in Australia stock exchange, what does it means. What happen to the shares of the share holder.

wendydaniel
Автор

What happened to my shares if delisting happen ? Will company buy back or how to buy & sell them if not ?

subbarayudumiriyala