How to sell shares after delisting
Stock Delisted. Good or Bad!? 🙁
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in his videos read easily look out what
happens when a stock gets delisted stay
tuned
hey traders warm welcome to you who
subscribes the channel appreciate your
support okay so this question is what
happens when a stock gets the listed
let's look at why it might be delisted
then why she happens after the listing
and what was your money if you happen to
have those shares in your portfolio
let's go okay so many or about every
single exchange has specific rules and
criteria that a company must meet to
stay listed on that exchange for example
and as that anyway I see LSC all of
those have their own rules that are all
around keeping a company that's got good
financial standing it's got I mean it
hasn't got the ability to commit fraud
easily it's a reputable nature all these
kind of things it's at being transparent
with their documents and all this kind
of stuff and so you can understand why
they have this on there so for example
NYC has stuff like the minimum number of
shareholders in other words there's a
certain number of shareholders it has to
hold the stock in bunches of 100 shares
on what we can't have one per one share
per holder they're looking to see that
there's a good selection of shareholders
that can't kind of grab it and corner
the market so to speak and they've got a
decent amount of number of shares
between them minimum market cap pretty
several sponsoring minima share prices
this is the one that catches most people
out for example New York Stock Exchange
says that if you trade under $1 for 30
consecutive days you're out and other
exchanges have different rules on that
house to keep a minimum share price yes
they can do reverse split and by the way
you haven't checked that I'll go and
check out that video but generally
speaking there's got to be a minimum
share price and also document fighting
it'll be transparent about what they're
doing but follow documents on time there
are cows all the other stuff there's
plenty of things that need to be done to
be traded on an exchange so what happens
when a stock gets d-list so you've got a
voluntary d listing and I've put good in
Jamarcus is potentially good it depends
on the circumstance you might say as the
company might say hey know what we don't
want to be listed anymore on the
exchange and for reasons could be we're
going private and their words were taken
it how the public has I was not going
public any more public Carlton but buy
shares we're taking it private I've got
private investors or whoever it may be
in which case they need to be trying to
exchange anymore there might be a merger
it's often two companies were merging
they might convert convert into one
share that's emerge of the two there
might be I just bought out by one in
which case they come under the umbrella
of the companies buying them out and so
that would be delisted so that could be
a good reason and some sort of
restructuring so they could be
potentially bluish reasons why the
stocks been delisted now let's look at
them bad reasons and these are pretty
much all bad if you've got an
involuntarily the list of you have been
involuntarily listed it generally means
you've broken one of the rules that we
talked about and it's just some by the
way so let's say your share price room
in a market cap has gone below the level
required and you are gonna be delisted
that's probably because you are in poor
shape financially right you if you're
not meeting the requirements if you're
not filing something's going wrong with
management if you're gonna in a market
cap that's not really good because
you're obviously with burning money in
the valuations dying
that's gonna be bad right and so what
happens then is it will be delisted and
not don't satisfy the requirements
there'll be some notice set out and no
more training will take place the
important thing to remember is that you
still own the shear so you still have a
legal right to those shares it just
means that you can't exchange them you
can't trade them on the exchange
exchange is just a facilitator for
buyers and sellers right it that's the
only thing you still own the shares
whether or not you do whether you want
to own the shares is another question
but you do still own the shares so now
they move to over-the-counter and
over-the-counter basically it's a buy
and sell these shares I mean you have to
trade through a market maker my
telephone maybe you can do it online but
ultimately a market maker is making the
market from the Buy and the sell side
and you have to go through that as
opposed to an exchange where yes there
are market makers there but has a
if I've got direct access I can put my
order in and the volume is generally
thicker the quality's there it's much
more pleasing and easier way to buy and
sell then through market makers and they
become hard as a cell you know you've
got to go through a market maker so
there may not be so many buyers waiting
spreads gonna be a wider and obviously
if it's been delisted potentially people
are you know they think this company may
well not be doing very well there's
probably gonna be more sell side
activity than there is by side but you
still own the stock my lesser stock goes
bankrupt unless they run out of money
completely used to loan it so used to
load that chunk of the company how many
shares you own used to loan that
regardless and that doesn't change your
st. Justin changes the mechanism which
you can buy and sell it so theoretically
yes the lower value at those shares
still have a value then you can still if
you can sell that you can realize that
value but of course you've got a fun of
buy if you're sure you've got to find a
boy for what you believe the price it's
worth that's what I was always thought
gets delisted guys if they break the
rules for any reason then they will be
in a voluntarily delisted Germany a bad
thing if for some reason they decide to
withdraw from exchange that could be a
good thing potentially comprised of a
merger or some kind of restructuring not
always good but more than likely there's
going to be a very reason for it could
be a good reason for it alright guys
that is where a stock is delisted see
you next one take care bye bye
you
