Delisting of Shares: What It Means for Common Investors
What is Share Delisting? Delisting refers to removing a company's shares from a stock exchange. Once delisted, these shares are no longer publicly traded, which can significantly impact investors. Understanding the mechanics of delisting and its implications is essential for common investors, especially when guided by a reliable stock broker in Delhi NCR, like Lares AlgoTech, who can provide tailored advice. 2. Types of Share Delisting Voluntary Delisting : This occurs when a company chooses to withdraw from the stock exchange. Companies may do this to avoid compliance costs or streamline operations, often offering shareholders a fair exit price. Involuntary Delisting : This occurs when a regulatory authority or stock exchange removes a company due to compliance issues, financial instability, or other regulatory breaches. 3. Reasons Behind Share Delisting Mergers and Acquisitions : Acquisitions often result in the acquired company’s delisting. Regulatory Compliance Issue