What is Delisting

Delisting is the withdrawal of an asset from the exchange listing. It can occur for various reasons, voluntary or involuntary. For example, a company can choose to remove its assets from the exchange market because it desires to turn private, based on the results of a cost-benefit analysis. This is referred to as voluntary delisting. It can also fail to meet some listing specifications decided by the exchange, leading to the automatic removal of asset from the listing. This is involuntary delisting. Other motives for delisting could be mergers or company bankruptcy.