Delist is a verb that means to remove something from a list of approved or official items. The spelling of the word can be explained using the International Phonetic Alphabet (IPA) transcription: /diːlɪst/. The first syllable is pronounced as "dee" with a long "i" sound. The second syllable is pronounced as "list" with a short "i" sound. The stress is placed on the first syllable, as indicated by the apostrophe (ˈ) in the IPA transcription. Overall, delist is a straightforward word to spell and pronounce.
Delist, verb
Definition (general): To remove a stock or security from being actively traded on a particular exchange or market.
Delisting refers to the process by which a publicly listed company's shares are removed from being traded on a specific stock exchange, rendering them unavailable for public trade. This action can occur due to a multitude of reasons, including financial struggles, bankruptcy, mergers, acquisitions, or non-compliance with exchange requirements. By delisting, a company essentially withdraws its shares from public trading, which impacts its perceived value and liquidity.
When a company is delisted, its shares can no longer be bought or sold on the exchange from which it was delisted. Consequently, as the stock is no longer traded on a major exchange, it typically becomes illiquid. However, delisted stocks may still be traded through over-the-counter (OTC) markets. Delisting also signifies that public investors will no longer receive updates or financial reporting, reducing transparency.
Delisting a company from a market exchange can have implications for both investors and the organization itself. Shareholders may experience financial losses as the stock may become difficult to sell or may lose value due to reduced demand. For the company, delisting can result in decreased access to capital, diminished visibility, and potentially higher financing costs.
In summary, the process of delisting involves removing a company's shares from the active trading of a particular exchange, potentially impacting the company's value, liquidity, and overall accessibility to capital.
The word "delist" is a combination of the prefix "de-" (meaning "removal" or "opposite") and the word "list".
The word "list" originated from the Middle English word "list" or "liste", which referred to a strip or border. It later evolved to mean a narrow strip of cloth worn over armor to protect the body. Over time, the term expanded to include a variety of meanings, such as a roll or register of names or items.
Therefore, "delist" was formed by adding the prefix "de-" to "list", indicating the act of removing or taking something off a list. In its modern usage, "delist" typically refers to the action of removing a company from a stock exchange, but it can also refer to the removal of an item or a person from any kind of list or register.