delist

de·list | \ (ˌ)dē-ˈlist

delisted; delisting; delists

Definition of delist

: to remove from a list especially : to remove (a security) from the list of securities that may be dealt in on a particular exchange

Examples of delist in a Sentence

Recent Examples on the Web The measure, if signed into law, could force scores of Chinese firms to delist from the New York Stock Exchange and the Nasdaq. — Washington Post, "Bank sanctions, delistings: U.S. poised to take financial fight to China," 28 May 2020 On Wednesday the Senate unanimously passed a bill that could force Chinese companies to delist from U.S. stock exchanges. — Jacky Wong, WSJ, "Chinese Companies Fleeing New York Will Find Warm Welcome at Home," 25 May 2020 Expect more fireworks in Beijing today after the U.S. Senate approved a bill to delist from U.S. exchanges certain Chinese companies. — Bernhard Warner, Fortune, "Markets rally hits pause ahead of U.S. jobs data," 21 May 2020 But having information about the lynx’s whereabouts is crucial for public policy, such as the government’s decision about whether to delist the lynx, said Jeff Lewis, a conservation biologist at the Washington Department of Fish and Wildlife. — Karen Weintraub, New York Times, "Lynx Numbers Are in Decline in the West," 8 Apr. 2020 The company has continued to review all takedown requests, cumulatively honoring 45% of requests to delist results, or about 846,000 links, through September 7 of this year. — Kate Cox, Ars Technica, "Google wins case as court rules “right to be forgotten” is EU-only," 24 Sep. 2019 The company intends to file documents delisting from Nasdaq with the SEC on or about May 4. — Alexandria Burris, Indianapolis Star, "Emmis Communications board votes to leave Nasdaq," 24 Apr. 2020 The risky plan to raise as much as $500 million, coupled with an impending reverse-stock split aimed at avoiding delisting, spooked investors. — Bloomberg Wire, Dallas News, "Chesapeake Energy’s survival strategy: Sell off up to $500 million in assets," 26 Feb. 2020 According to Kudlow, though, what has been ruled out — or was never even considered by the White House — is an extreme option that Wall Street feared the most: delisting Chinese firms from U.S. exchanges. — Jenny Leonard, Bloomberg.com, "Trump Is Still Studying Ways to Crack Down on Chinese Stocks," 6 Feb. 2020

These 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

Learn More about delist

Dictionary Entries near delist

Statistics for delist

Last Updated

2 Jun 2020

Cite this Entry

“Delist.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/delist. Accessed 6 Jun. 2020.

Keep scrolling for more

More Definitions for delist

delist

verb

Financial 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