If an Issuer is “Delisted” from the NASDAQ or NYSE, Does This Affect its Shares?
No. If a Shareholder owns stock in an Issuer that was delisted from a national exchange like the NYSE or NASDAQ and is now being quoted on OTC Markets, nothing changes regarding the shares themselves.
A Shareholder will remain the beneficial owner of the stock even after the Issuer is delisted and that stock can be traded through any broker-dealer that regularly deals in the Over-the-Counter Markets or in OTC securities.
Which Brokers Accept Delisted Stock?
Will the delisted stock be accepted by E-Trade or TD-Ameritrade? Probably not, but those are not your broker of choice for OTC Bulletin Board or OTC Markets Pink Sheet stocks anyway.
Can companies get “delisted” from the OTCQX, OTCQB and OTC Pink marketplaces?
No. OTC Markets quotes stocks but is not an exchange so there are no “listings.” The only way a public company’s stock stops being quoted in either the OTCQX, OTCQB and OTC Pink Sheet marketplaces is if every broker-dealer stops quoting the stock.
In those rare circumstances when public companies shares no longer exist, but they still have a trading symbol, and are still being quoted, the Issuer has an obligation to notify FINRA. FINRA will investigate and, if warranted, eliminate the trading symbol, and inform OTC Markets that the ticker is no longer valied. OTC Markets will then remove the quotations in that stock from OTCMarkets.com.
Shareholders needing referrals to brokers who specialize in the OTCBB, OTCQB, OTCQX and Pink Sheet stocks can contact Matt Stout, securities attorney, for a referral at (410) 429-7076.