delist
verb
\
Definition of delist
Examples of delist in a Sentence
Recent Examples on the Web
Iconic species like the bald eagle, the American alligator, and the brown pelican have recovered and been delisted. — Gabriela Chavarria, The Denver Post, "Guest Commentary: Protect the Endangered Species Act — we have too much to lose in Colorado and around the globe," 20 Aug. 2019 Since the law was passed, more than 1,650 have been listed as threatened or endangered, while just 47 have been delisted because their populations rebounded. — Lisa Friedman, New York Times, "U.S. Significantly Weakens Endangered Species Act," 12 Aug. 2019 Michael Graves’ Portland Building is being delisted from the National Register of Historic Places because of changes to its facade. — Carolina A. Miranda, latimes.com, "Essential Arts: The L.A. Phil’s centennial season was full of ‘good vibrations’," 22 June 2019 The company’s stock — currently trading at about 60 cents a share — is at risk of being delisted from the New York Stock Exchange. — Washington Post, "Retailers struggled during boom times. What happens if there’s a recession?," 22 Aug. 2019 Earlier this month the retailer was told by the New York Stock Exchange that its under $1-a-share price puts it at risk of being delisted. — Maria Halkias, Dallas News, "J.C. Penney chairman Ron Tysoe purchases 1 million shares of the retailer's stock," 19 Aug. 2019 The program also covers dragonflies and three special concern species — the cobra clubtail, umber shadowdragon, and stygian — are being delisted. — Michael P. Norton, BostonGlobe.com, "Bald eagle recovering, two bee species marked as endangered in Mass.," 16 Aug. 2019 The department store chain, which traces its roots to 1902, has six months to try and boost its stock price or face being delisted. — SFChronicle.com, "ICYMI: Netflix signs ‘Game of Thrones’ talent; New Orleans gets tough on Airbnb," 9 Aug. 2019 That is why major companies almost never allow their shares to be delisted short of going bankrupt. — Chris Isidore, CNN, "JCPenney could be kicked off the New York Stock Exchange because its stock is worth too little," 9 Aug. 2019These example sentences are selected automatically from various online news sources to reflect current usage of the word 'delist.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Keep scrolling for more
Keep scrolling for more
More Definitions for delist
delist
verbFinancial Definition of delist
What It Is
Delisting refers to the removal of a security from active trading. It generally occurs when a company goes private, is bought out, declares bankruptcy or fails to meet listing requirements.
How It Works
Voluntary delisting might occur if a company is acquired or goes private. Involuntary delisting occurs when a company fails to meet the listing requirements as determined by the exchanges it trades. Listing requirements can be very complex and different types of issuers and securities may have different rules, but generally the guidelines include filing financial statements in a timely manner, a share price above a certain price, a minimum number of shareholders, a minimum market capitalization, or certain revenue, profit, cash flow and trading activity requirements.
To understand how the delisting process generally works, let's consider the stock of Company XYZ. The NASDAQ delists companies that have closing bid prices below $1.00 for 30 consecutive days or more. So if Company XYZ stock closes below $1.00 on the 31st day, the NASDAQ sends a noncompliance letter to Company XYZ informing it that its stock has to start closing above $1.00 in the next 180 days (issuers that fall out of compliance with an exchange's listing requirements are usually not delisted immediately; they are given time to resolve the situation). The exchange will then add Company XYZ to its list of noncompliant issuers.
If, after 180 days, Company XYZ stock is still trading below $1.00, NASDAQ will delist the issue. Usually an issuer has the right to appeal a delisting. This acts as a stay against the delisting in many cases. But if the issuer loses the appeal, the security is delisted. The exchange suspends trading in that security and notifies the issuer and the Securities and Exchange Commission (SEC) in writing and releases a press release.
Why It Matters
Although not all companies are delisted for negative reasons, delisting prevents exchanges from being filled with shoddy securities from issuers that may be on their last leg. By ensuring that all issuers maintain high administrative standards, exchanges are helping to reduce the systematic risk associated with the market and protect investors.
Source: Investing Answers
delist
verb
English Language Learners Definition of delist
See the full definition for delist in the English Language Learners Dictionary
delist
transitive verb
\