The Dirt On Delisting

When stocks are soaring and initial public offerings (IPOs) are raking in the money, it can seem like a bull market will never end. Nevertheless, market downturns are inevitable, and when the fall from grace occurs - as it has many times in the stock market's history - textbook conditions for delisting can be created. Here we examine how and why delisting occurs and what this change in status means - for both the company being delisted and the individual investors that hold its stock.