How Delisting Works
Companies must meet specific guidelines, called “listing standards,” before they can be listed on an exchange. Each exchange, such as the New York Stock Exchange (NYSE), establishes its own set of rules and regulations for listings. Companies that fail to meet the minimum standards set by an exchange will be involuntarily delisted. The most common standard is price. For example, a company with a share price under $1 per share for a period of months may find itself at risk of being delisted. Alternatively, a company can voluntarily request to be delisted.
