What Is Delisting?
Delisting is the removal of a company's stock from an exchange where it is listed for trading. Once a stock is delisted, it can no longer be bought or sold on that exchange in the usual way. Shares may still trade elsewhere, such as in the over-the-counter market, or they may stop trading altogether.
Delisting can be voluntary or involuntary. A company might choose to delist, for example after a going-private transaction or a merger that leaves its shares held by only a few owners. An exchange can also force a delisting when a company no longer meets the exchange's listing requirements.
Common Reasons
Exchanges set listing standards that cover things like minimum share price, minimum market capitalization, number of shareholders, and timely filing of financial reports. Falling below these standards can lead to warnings and, if not corrected, a delisting.
Other common causes include bankruptcy, a takeover by another company, and a decision by management to stop being a public company to reduce regulatory costs.
Why It Matters to Investors
Delisting often reduces the liquidity of a stock. With fewer buyers and sellers, it can become harder to sell shares quickly, and the price may be less transparent. Some investors may be forced to sell at unfavorable prices or may have to hold shares that no longer trade.
When a company is delisted in a takeover or going-private deal, shareholders typically receive a cash payment or shares in the acquiring company. In other cases, shares may become worthless if the company fails.
Investors can learn about a company's delisting through exchange notices and company regulatory filings. Reading these disclosures helps clarify what happens to the shares and what options, if any, are available.
Updated October 18, 2026. For general education only; not financial, tax or legal advice.