What is DELISTING OF SHARES?

Question

hi

what is delisting of shares and what is the meaning of terms ,,,institutional holder, individual holder and mutual fund holder.

thank you

bharath

Answer 1

When a company's share are delisted, it means that they can no longer trade on that exchange/bourse. I'm not sure of all the reasons this can happen, but I'm pretty sure that if the stock price goes to 0 or near 0 they will be delisted.

The other "holder" terms just describe what kind of person/entity owns the stock. "Institutional" means a pension fund, university endowment fund, or other organization owns the stock. "Individual" -- well, that's just regular people. "Mutual fund holder " -- I assume that's an investment company that sell mutual funds (collections of different stocks, bonds, etc.) to individuals.

Hope that helps.

Answer 2

"Delisting"(Removal from exchange) of shares is done when a traded company commits a violation of an exchanges rules, and/or  failing to reach financial specifications set by the exchange.  

Delisting does not mean that the stock is no longer traded.  Many delisted stocks still trade OTC (Over The Counter) on Pink Sheets.  Pink Sheet stocks known as "Pinks" will have a .pk at the end of their symbol.

Answer 3

delisting is when they beat, beat, beat you down by taking available shares of a stock off the market. For example,. every single publically traded comapany values it's company based on the number of shares they issue to the public (they also keep a number of shares to themselves)... if a company starts trading on the NASDAQ with an opening of 2 million shares out there for people to buy.. then after a while, people only bought 1 million shares so there was 1 million outstanding.  Now, let's say the co wants to drive up demand for it's stocks, they might decide to delist half (or 500,000) of those outstanding shares.  So, they take those off the market, leaving only 500k shares available for the public to buy (they will hope that makes people say, "hey, there's less of that, and now i want some"....that's called De-listing.. they are taking the availability of those shares off the open market.

Answer 4

Shares are delisted when they are removed from a stock exchange, usually for failure to meet the exchange's minimum requirements for price, capitalization, or liquidity, but sometimes for worse reasons like fraud or failure to file the reports the exchange or regulators require.   Once removed, normally no-one is acting to make a market for the shares.  This doesn't mean you can't still trade them on the "Pink Sheets" or via some other mechanism, but it means it will be harder to do so and harder to determine if you are getting or paying a fair price.

An individual holder is a person (or company controlled by a person) that holds shares for their own benefit, passive or active.  A mutual fund holder is exactly what it says - a mutual fund that holds shares for the benefit of the owners of the mutual fund, almost lawys as a passive investment (or, reading the answers above, maybe in this context it is a person that owns the mutual fund units).  An institutional holder is an entity like a bank or insurance company that could hold the shares for their own benefit, or possibly for investors in one of the institution's funds or products.

Answer 5

presumably delisting of shares is when you take them off the stock market. (ie not listed on nasdaq) or whatever.

Answer 6

the share is no longer saleable in the stock markets.

Institutional Holder - a company or organization that purchases stock of other companies.

Individual Holder - a person who owns stock

Mutual Fund Holder - a person who owns shares of a mutual fund that is managed by an individual or investment company.