Delisting does not mean that shareholders are left with a penny. Delisting is a situation in which a company** ceases trading on an exchange, and does not mean that the company is completely bankrupt or shareholders completely lose all interest. After delisting, shareholders may still retain their shares, but they will not be able to buy or sell them on the exchange market.
*Delisting is due to the disqualification of a company to continue trading on the market in one or more of the series of criteria set out by the company. These delisting criteria may vary depending on the country and region. Generally speaking, the reasons for delisting can be divided into trading, financial, regulatory and material violations. Here are some examples of common delisting scenarios:
1.Transactional Delisting:The trading volume is below the stated level for an extended period of time, or below the stated minimum for a continuous period of time. For example, a company**'s cumulative trading volume falls below the prescribed threshold within 120 trading days.
2.Financial delisting:The company's financial condition has serious problems, such as consecutive years of losses, negative net assets, or false records in financial reports. For example, the company has lost money for four consecutive years and has been found to be fraudulent.
3.Normative delisting:The company fails to disclose its annual or semi-annual report on time, or there are material deficiencies in the information disclosure. For example, the company fails to disclose a financial report or semi-annual report within the required period.
4.Delisting of major violations:The company is involved in fraudulent issuance, illegal disclosure of material information or other illegal acts that seriously damage the market order. For example, the company has committed serious violations of the law, seriously harming the national interest or public interest.
When an investor is unfortunate enough to buy a company that is about to be delisted, the final result depends on the situation of the company after the delisting. During the delisting period, investors can still make transfers in over-the-counter markets, such as China's "Old Third Board". You can choose to sell** or trade through the Old Third Board. However, it should be noted that the ** liquidity after the delisting is poor, and it may be difficult to find a buyer or sell at a satisfactory **.
To sum up, delisting does not mean that shareholders have lost a penny, but investors need to make corresponding decisions according to the company's situation and market conditions after delisting. Investors should pay close attention to the delisting warning as well as the company's financial and operational conditions to avoid the risks associated with buying delisting**. ##