What is Delisting and How Does it Affect Investors?

Delisting refers to the removal of a security (such as a stock, bond, or mutual fund) from a stock exchange or other financial market where it was previously listed. This can happen for a variety of reasons, including:

1. The company has gone bankrupt or has been acquired and is no longer traded as a separate entity.
2. The company has failed to meet the listing requirements of the exchange, such as minimum market capitalization or profitability standards.
3. The company has chosen to delist from the exchange and move to a different market, such as the over-the-counter (OTC) market.
4. The security has become too illiquid or has fallen below a certain market capitalization threshold, which can lead to its delisting.

When a security is delisted, it is no longer traded on the exchange and investors may have difficulty buying or selling the security. This can be a significant issue for investors who hold positions in delisted securities, as they may not be able to easily sell their shares or execute trades at favorable prices.