What does it REALLY mean when NASDAQ is going to delist a company’s securities?

Chris: What does it REALLY mean when NASDAQ is going to delist a company’s securities?
Is this an indication that the company I work for is in serious financial trouble and may close? Is my stock now worthless?

Answers and Views:

Answer by enoriverbend
It ain’t good.

A company generally gets delisted for having a stock price drop below $ 1 and stay there for six months, or have a market cap drop below $ 5M and stay there for 3 months.

So your company may be in some financial straits, at least. And your stock may possibly continue to sink further. It’s impossible to be certain, these are not firm and 100% accurate predictions, and companies do come back from being delisted, after they have fixed whatever underlying problems caused it in the first place.

Answer by porwest
Just to add a point, it also makes it more difficult to attract new investors which means as the company continues down a bad financial path it will have a harder time raising money. Most delisted stocks end up on the OTCBB.

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