What happens when a company is delisted from the Nasdaq?

JiMi: What happens when a company is delisted from the Nasdaq?
If a company doesn’t meet the Nasdaq requirments and gets delisted. What type of fate does that mean for the company? Will they go out of business?

Answers and Views:

Answer by Paul in San Diego
They end up going to the over-the-counter bulletin board (OTCBB). Usually companies are delisted, because the value of their stock goes below $ 1 a share. The OTCBB specializes in penny stocks that are not traded on exchanges like NYSE or Nasdaq.

The fate for the company is that people probably won’t buy the stock much anymore, because it’s not available on a major exchange. They won’t necessarily go out of business. But, they will have a hard time raising operational capital from the sale of stocks.

Answer by Bill B
If they are delisted, they likely go to the over the counter bulletin board sheets. It means their stock has less visibility. They won’t go out of business because they were delisted, but might likely go out of business because of what caused them to get delisted.

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