What is delisting process and how it is executed?

The delisting process refers to the removal of a company's stock from a stock exchange, which can occur voluntarily by the company or involuntarily due to failure to meet listing requirements. To execute a voluntary delisting, the company typically announces its intention to withdraw its shares from the exchange and may conduct a shareholder vote. Involuntary delisting occurs when a company fails to comply with regulatory standards, prompting the exchange to take action. Once delisted, the company's shares may still trade on over-the-counter (OTC) markets, but they lose the visibility and liquidity associated with exchange trading.