What happens to an investor’s shares when a company delists?

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On Wednesday, the Senate passed a bill that, if made law, could remove scores of foreign companies—mostly Chinese—from U.S. stock exchanges. The forced delisting would strip affected companies of billions in market value, and cause a great deal of reputational damage, too.

But what happens to shareholders holding stock in a company that is suddenly no longer on the market?

The short answer: Nothing.

Shareholders can keep their shares when a company delists and retain their rights as shareholders in the company. The cash value of those shares, however, might be virtually nil.

Investors witnessed this effect on Wednesday when

Read more    Source: fortune.com

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