• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 1. Sages and Charlatans: Avoidin... > Red Flag 14: A Company’s Shares Are ...

Red Flag 14: A Company’s Shares Are Delisted by a Stock Market Such As the NYSE

Exchanges such as the New York Stock Exchange don’t like to delist stocks because listing fees are a critical source of revenue. So, when the day finally comes, it usually means that the company being delisted has either committed some terrible misdemeanor or its stock has sunk below $1 and stayed there for a long time, resisting any attempts to resuscitate it. Either way, investors who have stuck with it have almost certainly lost out. The NYSE can issue a delisting warning if a stock is below an average of $1 for 30 days, after which the company usually has about six months to persuade the exchange that it can get the price back above that level. The exchange can also delist a stock for breaching other listing rules, though this happens much less often. The Nasdaq stock market allows a company 180 days to get its stock back above the $1 mark if it has been below for 30 consecutive days; that is double the 90 days that applied before the September 11 attacks.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint