What if a stock is delisted?

Delisting is when a stock is removed from an exchange.

A security can be delisted for a number of reasons, such as:

The security no longer meets an exchange’s listing requirements
The company initiates the delisting
Acquisition or a merger occurs
Called for redemption

Note

Robinhood only supports trading of fractional shares for National Market System (NMS) securities listed on national issues exchanges like the Nasdaq and NYSE, and not for stocks traded over the counter (OTC). If a stock is delisted, Robinhood may sell any fractional portion of the OTC security.

Here’s what can happen if a security you own is delisted:

The security's margin requirement can change
Because the security no longer trades on the same exchanges, a national best bid and offer (NBBO) no longer exists
Typically, you can’t open new positions in the security but you may be able to close your position

You may also need to find stock quotes elsewhere for an idea of what price your sell order will execute at if you choose to and are able to close the position.

You can check out pending delistings with US Nasdaq and New York Stock Exchange.

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