Cryptocurrency Q&A
What happens if a company is delisted from a major stock exchange?
What happens if a company is delisted from a major stock exchange?
CryptoWizardry
Fri Nov 15 2024
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5 answers
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A company being delisted from a major stock exchange typically raises concerns about its financial health, market performance, and future prospects. This scenario often leads to questions about the impact on shareholders, the company's reputation, and its ability to access capital markets.
5 answers
Valentina
Sun Nov 17 2024
When a company ceases to be listed on a prominent stock exchange such as the NYSE or Nasdaq, its shares do not necessarily become untradeable.
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Elena
Sun Nov 17 2024
Instead, they can continue to be traded publicly but will need to transition to an alternative platform. This could be an alternative exchange or the over-the-counter (OTC) market.
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GyeongjuGloryDaysFestivalJoy
Sun Nov 17 2024
The OTC market operates differently from major exchanges in several ways. Notably, it has more lenient listing requirements, making it a viable option for companies that may not meet the stringent standards of larger exchanges.
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Tommaso
Sun Nov 17 2024
However, the OTC market is generally less liquid than major exchanges. This means that it may be more difficult to buy or sell shares quickly and at a fair price.
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CryptoQueenGuard
Sat Nov 16 2024
Transparency is also an issue in the OTC market. Information about companies and their shares may not be as readily available as on larger exchanges, which can make it harder for investors to make informed decisions.
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