Expert: Gina Boykin - 9/19/2007

Question
I've come across a new term - delisting.  I have a few shares of an equity that is doing poorly but from a company about which I believe will be growing.  In reading the message boards I have seen it expressed that the stock is one tenth of the way to delisting notice.

Answer
If a stock is delisted, it means that it will be taken off the stock exchange listing.  This can happen if a company doesn't meet financial requirements - either they missed a filing deadline for their financials, or they have investigations into their financials, or for another reason.  IF this happens, the company will no longer be on whatever stock exchange it's on.  It can still be traded over the counter and could retain it's value.

A delisting notice, however, is a notice from the stock exchange that the company is in danger of being delisted at some point.  The company could get multiple notices before actually being delisted, though, or the company could correct the situation in the meantime.