What happens to your investment when a stock gets delisted from NASDAQ?

magicjosh5: What happens to your investment when a stock gets delisted from NASDAQ?
So what happens when you buy a stock and it gets delisted from NASDAQ like Spansion? I didn’t buy it. Do you just lose your investment? When it gets delisted it is an OTC stock right? Also lets say you bought it when it ‘s an OTC and they go back up to were they were. Can they get put back into NASDAQ? What happens to your investment if that happens?
Sorry SpanKy, but that’s not what delisting means…

Answers and Views:

Answer by SpanKy
You need to contact the company and inquire about the missing listing.

Answer by financegal27
A stock being delisted from any exchange is a bad sign. Not being listed on an exchange makes the stock less liquid. This means that while the stock may still have value it is much more difficult to find buyers for your position. It also can result in a big price decline as index based ETFs and Mutual funds sell their positions and add the replacement stock. The same thing occurs when a stock is added to and index or an exchange, if a stock is added to an index it usually experiences a short term spike in the price as it is purchased en mass by the index funds and ETFs that replicate the index, when its added to an exchange it often results in increased liquidity for the shareholders. Hope that helps!

Answer by MVD34
No, delisting, as a single event, is not equivalent to liquidation.

Yes, it would normally trade OTC, pink sheets, unless it was taken private.

If taken private before delisting, your broker would receive payment in exchange for your shares and you would get the cash at clearing. If after delisting, you would have to fill out the exchange paperwork yourself and mail in the share to get payment.

If it is not taken private or liquidated (bankruptcy), it could theoretically be re-listed if things changes and it refiles for listing. however, I believe the stats on this are grim — it rarely happens.

Answer by jeff410
Its usually quoted in the Pink Sheets or the Over the Counter Bulletin Board, with a steep drop in price. Chances are usually slim they will ever get back on an exchange. And it could completely disappear.