Delisting (so mostly said in German, more rarely stock exchange withdrawal and delisting)
A company – withdraws from the stock exchange entirely of its own accord or – is excluded from the stock exchange, for example because of a violation of the stock exchange rules (removal of a company’s listed status). – A company removes a share admitted to trading from the exchange (the removal of a listed security from the exchange on which it trades). The reason for this is often that the price of the share was unsatisfactory and there were unwelcome repercussions for the company’s reputation. – In Germany, this process is regulated by law and supervised by the Federal Financial Supervisory Authority. Although delisting represents a significant change in the conditions under which a share can be traded, it is not yet subject to an ad hoc notification requirement in Germany, as it does not formally represent a change in the financial or economic situation of the company. – The delisting of a company usually results in damage to the remaining small investors. This is because they can now hardly assess the market value of the corporation as expressed by the share price. – See deregistration, delisting, going private, public-to-private, Rule 404, Sarbanes-Oxley Act.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/