Legal Definitions - delisting

Definition: Delisting is the removal of a security from an exchange because it fails to meet the exchange's listing requirements. This can happen if the security does not comply with the minimum net-asset requirement.

Example: If a company's stock is delisted from the New YorkStock Exchange (NYSE) because it no longer meets the exchange's listing requirements, investors will no longer be able to buy or sell the stock on the NYSE.

This example illustrates how delisting can impact investors who hold a particular security. When a security is delisted, it can become more difficult to trade, which can lead to a decrease in liquidity and potentially lower prices.