Usually, when a stock is taken from the market because it no longer satisfies the requirements of its exchange, the term “delisting” is used. Companies and their stocks need to adhere to specific standards to be listed on a significant exchange like the Nasdaq. The basic requirements for being listed on the Nasdaq Global Market are:
(1) A share price of at least one dollar
(2) A minimum of 400 shareholders overall
(3) 50 million dollars in market value, 10 million dollars in stockholders’ equity, or 50 million dollars combined to form assets and revenue.
Additionally, businesses must promptly notify the Securities and Exchange Commission (SEC) of any relevant news, file their quarterly and annual reports on time, and adhere to a number of continuing corporate governance standards. The company’s shares could be removed from the exchange if any standards are not met. A corporation may relist on the exchange if the listing conditions are once more satisfied.
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