# Delisting > The removal of a company's stock from a national exchange, either voluntarily or because it failed listing standards, often leaving it to trade OTC. Source: https://www.quantisnow.com/glossary/delisting Topic: Glossary / Corporate actions Also known as: stock delisting, exchange delisting, delisted stock Last updated: 2026-10-27 Delisting is the removal of a company's securities from a national stock exchange such as Nasdaq or the NYSE. It can be involuntary, when the company fails continued listing standards, or voluntary, when the company chooses to leave, often after a merger or a [going-private transaction](https://www.quantisnow.com/glossary/going-private). ## How it works Involuntary delisting usually starts with a deficiency notice, disclosed in an 8-K under Item 3.01. Common triggers are a bid price below $1.00 for 30 consecutive business days (generally 180 calendar days to cure), stockholders' equity or market value below thresholds, late periodic filings, or a bankruptcy filing. The company can submit a compliance plan, cure the deficiency or appeal to a hearings panel. If it fails, the exchange suspends trading and files a [Form 25](https://www.quantisnow.com/glossary/form-25) with the SEC. Delisting generally becomes effective 10 days after the Form 25 is filed. In a voluntary delisting, the issuer files the Form 25 itself. Delisting from an exchange is separate from deregistering with the SEC; a company may later file a [Form 15](https://www.quantisnow.com/glossary/form-15) to stop periodic reporting if it qualifies. ## Why it matters for traders Once delisted, most stocks move to the [OTC markets](https://www.quantisnow.com/glossary/otc-markets), where liquidity is thinner, spreads are wider and many institutions cannot hold them. That forced selling often hits around the suspension date. Watch Item 3.01 8-Ks, cure deadlines and hearing outcomes. A deficiency notice is a warning, not a delisting, and many companies regain compliance through a reverse split or by filing late reports. ## Example Hypothetical Northwind Retail (NWRT) closes below $1.00 for 30 consecutive business days and receives a Nasdaq notice, which it discloses in an 8-K. After 180 days it has not cured, is denied an extension and loses its hearing appeal. Nasdaq suspends trading and files a Form 25. NWRT resumes trading on the OTC market the next day, falling from $0.45 to $0.28 on heavy volume. ## FAQ ### What happens to my shares if a stock is delisted? You still own them. They typically keep trading over the counter, though with less liquidity and possibly at a lower price. ### Does a delisting notice mean the stock will be delisted? No. It starts a compliance period. Many companies regain compliance before any delisting. ## Related terms - [Form 25](https://www.quantisnow.com/glossary/form-25.md): The SEC filing that removes a class of securities from listing on a national exchange, made by either the exchange or the company. - [Form 15](https://www.quantisnow.com/glossary/form-15.md): The SEC filing a company uses to terminate registration of a class of securities or suspend its periodic reporting obligations. - [Minimum bid price requirement](https://www.quantisnow.com/glossary/minimum-bid-price.md): An exchange listing rule requiring a stock to trade at $1.00 or more, with a deficiency notice after 30 consecutive business days below it. - [OTC markets](https://www.quantisnow.com/glossary/otc-markets.md): Trading venues outside the national exchanges where stocks trade through broker-dealer networks, mainly the OTCQX, OTCQB and Pink tiers. - [Chapter 11 bankruptcy](https://www.quantisnow.com/glossary/chapter-11.md): A US bankruptcy process that lets a company keep operating while it restructures its debts under court supervision through a plan of reorganization. - [Going-private transaction](https://www.quantisnow.com/glossary/going-private.md): A deal in which a public company's shares are bought out, often by private equity, insiders or a controlling holder, and the stock stops trading. ## On Quantisnow - [Stock exchanges](https://www.quantisnow.com/exchanges) - [OTC-traded companies](https://www.quantisnow.com/exchanges/otc) - [Stock exchanges explained](https://www.quantisnow.com/guides/stock-exchanges-explained) - [Corporate actions: splits and ticker changes](https://www.quantisnow.com/corporate-actions) - [Latest delisting and bankruptcy notices](https://www.quantisnow.com/top/delisting-bankruptcy-notices)