How to Sell Delisted Shares
Do you still holding the shares of any delisted companies? Also, do not have any idea on how to sell delisted shares? This article will guide you on what to do!
“How to sell delisted shares?” is a common question from investors, especially those hold huge number of shares in hand, but no idea on how to sell them after the company got delisted from stock exchange.
Understand what is delisting
There are two types of delisting. First is a voluntarily delisting. With this, a company opt to delist its shares from the stock market. Companies with huge capital reserves and no debt, not required money from public, generally opt to delist their stocks.
Second type is is compulsory delisting. Here, stock exchange authorities will force the companies to delist stocks from the stock market. This may happen by lacking of compliance and violation of terms and conditions. However, they still have options to re-apply to the stock markets to re-list the shares again once after all the issues resolved.
How delisted company shares stuck with investors?
Once the company decided to delist from the stock market, they would advertise the same to public through major channels. They also inform their shareholders in writing. In order to sell the shares in hand, company offer a time frame to the investors along with the price per share.
Any investor, who have missed such vital information or not sold the the stocks within specified time, the shares will remain with them as dead assets!
So, how to sell delisted shares?
No options remaining for the investors to sell the delisted shares once the company closed its business and operations permanently. If the company is still existing, then check with the below options:
1. Contact the promoters:
Investors to contact the promoters to check the possibility to sell their shares in a premium offer price from the promoters.
This is the best available option to sell the shares of a company delisted from the stock markets at their own interest.
2. Check with other exchanges
Once the company shares delisted from a stock exchange, it would be difficult to list with the same exchange again. Check whether the company listed with any other exchanges, such as regional stock exchanges etc..
If so, investors may get an opportunity to sell the shares with that exchange. Contact the exchange authority to get further information.
3. Wait for re-listing the Company
It is possible for the delisted companies to re-list again once after they rectify all the issues with the stock exchange. Upon re-listing, investors have an option to sell the shares through the exchange.
However, investors must enquire and confirm the re-listing possibilities of the company in order to hold the shares than looking another options to sell-off them.
4. Sell through brokers
There are brokers who deals with selling delisted company shares. Find such brokers and approach them. They may help you to sell the delisted stocks.
However, the commission for such dealings would be possibly high.
5. Sell outside the stock market
Search the actions of other investors with the delisted shares. Also find out any dealers outside the stock market, specialized dealing with delisted company shares. Investors have options to approach them to sell the shares.
Conclusion
For any stock investor, it is mandatory to monitor all the investments, news and actions from the companies time to time. Investments without any monitoring activities have huge chances to put the investors in trouble later.
Some unlisted companies allows investors to hold their shares even after delisting the company from the stock market. However, it is best to sell-off the shares as soon as possible. As the company is not officially listed anywhere, those shares still have huge liquidity risks.