Delisting of shares from the stock exchange has a lot of implications for an investor. In such situations, their investments get stuck because of the absence of opportunity to trade and there is no way for them to exit the investment.
This also requires an investor to wait for quite some time before the shares are relisted again. To avoid such problems, investors have to be alert to the situation that is developing in front of them.
Check on problem companies
There are several companies that are on the list of being delisted from the stock exchange. An investor has to check his holdings for such companies.
This list is available with the stock exchange and it is also updated and changed at regular intervals. An investor has to be alert and in some cases he might be better off getting the money back rather than witnessing the exit route blocked. This danger is high in case of smaller companies and hence higher scrutiny should be exercised regarding such companies.
Look out for advertisements
The process of delisting is not an overnight phenomenon. There are certain steps that have to be followed in the entire situation.
One of them is that there has to be an advertisement given so that the investors holding shares in these companies are aware of the position. This can then help them to take any action that they should desire when they actually want to salvage their investment. This is essential and the investors have to be on the lookout for these advertisements.
Keep the plan ready
The investor also has to do some homework and need to have a plan ready to tackle such situation. They have to be aware of the fact that there can be a position where their company could be delisted. What they do in such a position is important and it will vary from investor to investor.
It is always better to have some sort of plan ready because starting to think about this matter when the situation is staring them in the face leaves them with very little time for corrective action. This can lead to wrong decision and can cause adverse financial implication.
At the same time, there is also the position where being slow can lead to some impact in case they miss out on deadlines.