Quote:
Originally posted by vl_86
when a stock gets de-listed, it just means they aren't on a stock exchange anymore
getting listed on the stock exchange includes having a minimum price, annual reporting requirements, etc
usually the main reason stocks are de-listed is not meeting a minmum price, and might have a reverse stock split in order to get back on there
A really bad thing about not being on the stock exchange is that they might be able to screw around with the annual reports, not having enough equity funding
|
Actually two things can happen if a stock gets delisted:
1) It gets kicked down to a junior exchange.
(ie. NASDAQ to OTCBB) (OTCBB to Pinksheets)
2) It just no longer trades. You are left with stock which will have very little to zero liquidity.