سهم مسجل بالبورصة هو سهم يتم التداول به على سوق الأوراق المالية أو البورصة، وهو يعتبر دليلاً على ملكية جزء من شركة معينة. يسمح للمستثمرين شراء وبيع هذه الأسهم، مما يتيح لهم المشاركة في أرباح الشركة ونموها. يتم تسجيل الأسهم في سجلات الشركة، مما يضمن حقوق المساهمين ويحدد عدد الأسهم المتاحة للتداول.

Definition and Example of a Listed Stock

Stocks can be removed from the list of tradable stocks on the stock exchange. The removal of a stock from the exchange is known as “delisting.” This process occurs when a stock fails to meet the exchange’s requirements or when the company chooses not to be publicly listed anymore.

A stock is removed from the list if the issuing company fails to meet the minimum standards set by the exchange in which it is listed. For example, if ABC Company is listed on the Nasdaq Global Market for three years but fails to meet the income requirements for the last two years, Nasdaq may delist that company.

How Does Stock Delisting Work?

Stock exchanges have rules and standards that companies must meet to remain listed. These standards are known as listing standards. Some exchanges have initial listing standards that apply to new stocks and ongoing listing standards that stocks must meet to stay listed. The ongoing listing standards may be higher or lower than the initial standards. Some exchanges may only require maintaining the same standard throughout the duration of the stock’s listing.

It is important to note that there are more than 20 registered stock exchanges in the United States, each with its own specific listing standards.

Delisting occurs when both the stock and the issuing company fail to meet the listing standards for the exchange where they are listed. For example, to be listed on the Nasdaq Global Market, a company must meet at least one of the four specified criteria for that market. Each of the four criteria requires a minimum bid price of $4 per share. For the first criterion, the company also needs to:

• Pre-tax earnings: $11 million or more combined over three years, greater than $0 for each of the previous three years, and more than $2.2 million for each of the last two years.
• For the second criterion, the company will need:

• Cash flows: At least $27.5 million combined over the last three years, with no negative cash flows over the last three years.
• Market value: $550 million over the year with positive cash flows.
• Revenue: More than $110 million.

• For the third criterion, the company will need:

• Market value: More than $550 million over the past 12 months.
• Revenue: More than $110 million for the most recent fiscal year.

• For the fourth criterion, the company will need:

• Market value: $160 million.
• Total assets: $80 million.
• Shareholders’ equity: $55 million.

All four criteria require the company to meet different liquidity requirements based on the company’s situation, whether it is an Initial Public Offering (IPO), a spin-off, an established company, or a subsidiary.

If ABC Company is listed on the Nasdaq Global Market under the fourth criterion, but its market value drops below $160 million, the company will receive a notice from Nasdaq that it is non-compliant. However, the exchange is likely to grant the company a grace period to become compliant again.

If ABC Company fails to regain compliance with the listing standards, it will be delisted from the Nasdaq Global Market.

Companies can also choose to voluntarily delist. This can happen if the issuer decides to completely withdraw from publicly listed markets.

When a stock is delisted, the exchange must submit a Form 25 in a timely manner. The exchange sets a date for delisting that is at least 10 days after the Form 25 is submitted to the Securities and Exchange Commission. The exchange is also required to publicly announce the delisting on its website at least 10 days before the delisting date.

Types

Delisting

There are two types of delisting: exchange-initiated delisting, sometimes referred to as “involuntary delisting,” and source-initiated delisting, sometimes referred to as “voluntary delisting.”

Exchange-Initiated Delisting

Exchange-initiated delisting occurs when the exchange on which the stock is listed takes action to remove a company that does not comply with the required standards from its trading list. Exchanges do this to protect investors from failing companies, as not all companies are transparent or adhere to the rules to the same extent as others.

The exchange typically removes the stock after giving the company an opportunity to meet the listing standards again.

Source-Initiated Delisting

A company can request to have its stock removed from the exchange on which it is traded. When the stock is voluntarily delisted by the company, it may not necessarily be for bad reasons. The reason might be the company’s desire to go private. In this case, its shares might have been purchased, possibly by a private equity firm. This could signal good things to come for the company.

The stock can also be delisted as a result of a merger or financial restructuring. In these cases, the stock may move to another exchange or be traded under a new identifier.

What Does This Mean for Individual Investors?

Stocks listed on exchanges they were traded on are removed. They then trade “over the counter” (OTC). Stocks traded over the counter are done through what is called a “market maker.” Pricing details are provided by either the Over-the-Counter Bulletin Board (OTCBB) or Over-the-Counter Link LLC.

If the stock price falls below the level required by the listing standards, the company may use reverse splits to address the pricing issue. This does not affect the value of your investment but gives you fewer shares in the company.

The main difference between an over-the-counter stock and a stock on a major exchange is that your broker is less likely to deal with an over-the-counter stock. But this does not mean they won’t, but some brokers do not offer over-the-counter stocks. If you want to retain a stock that has been delisted, you will need to work with a broker that offers OTC trading.

Even if your broker does not trade in OTC stocks, you are likely to have an opportunity to sell or convert your shares when the company is delisted. Your broker may also set a date when the stock can be sold or converted using their services.

If the company is delisting because it is going private, you might be offered a purchase offer from the source. If you do not accept the offer, your share will lose its value upon the company’s delisting.

Source: https://www.thebalancemoney.com/what-does-it-mean-when-a-stock-is-delisted-357804