delist

verb de·list \ (ˌ)dē-ˈlist \

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

See delist defined for English-language learners

Recent Examples of delist from the Web

The company offered no further comment on the matter and a spokeswoman did not immediately responded to questions about the delisting’s effect on its operations.

— ron hurtibise, Sun-Sentinel.com, "NYSE initiates delisting of Fort Lauderdale-based Patriot National," 29 Sep. 2017
That would likely lead to Toshiba reporting negative equity for two years in a row, increasing its chances of its shares being delisted.

— reuters, Fortune, "Why Western Digital Is Calling It Quits on the Toshiba Chip Sale," 5 Sep. 2017
The federal courts put a stop to this reckless mistreatment and slaughter of wolves, and politicians shouldn't undercut judicial review of delisting actions.

— charles p. pierce, Esquire, "So, Scalia Was a Stonecutter?," 25 Feb. 2016
Otherwise, its shares would be delisted under Tokyo Stock Exchange rules.

— takashi mochizuki, WSJ, "Toshiba Revives Talks With Foxconn Over Chip Unit," 10 Aug. 2017
Should the grizzly bear be delisted—or this just yet another awful environmental move by the Trump administration, divorced from science and decency?

— susan matthews, Slate Magazine, "Grizzly Bears Are Now the Victims of the Trump Administration’s Climate Denialism," 23 June 2017
The shares were delisted in February this year and the company is being liquidated.

— julie steinberg, WSJ, "Hong Kong Regulator Drops Lawsuit Against UBS, Standard Chartered Over 2009 IPO," 13 Oct. 2017
Companies delisted from one of the major exchanges can choose to trade on the less-regulated Over the Counter Bulletin Board [OTCBB] or the pink sheets system, according to Investopedia.com.

— ron hurtibise, Sun-Sentinel.com, "NYSE initiates delisting of Fort Lauderdale-based Patriot National," 29 Sep. 2017
Some small internet firms have bought back all their shares and delisted in America, then relisted in mainland China, but the cost of this for the big firms would be prohibitive.

— The Economist, "SchumpeterA legal vulnerability at the heart of China’s big internet firms," 16 Sep. 2017

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.

First Known Use of delist

1929

Financial Definition of DELIST

delist

verb

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