Financial Quotient

What is voluntary delisting?

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Delisting may be voluntary or involuntary. Voluntary delisting is what happens when a company chooses to leave the exchange of its own accord. Involuntary delisting happens when a firm ceases operation, goes bankrupt or fails to meet listing requirements.

In a voluntary delisting, retail investors may be disadvantaged in terms of the price they get.

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A version of this article appeared in the print edition of The Sunday Times on June 21, 2020, with the headline What is voluntary delisting?. Subscribe