Asked on 07 Dec 2019
How can we sell these delisted stocks?
When your share is delisted, it becomes an over the counter stock. You will have to find a buyer on your own, or find a market maker. It's going to be extremely tricky to do so.
If the delisted is as a result of an acquisition, such as the case of SMRT, you'll be paid, so no worries there.
So pay close attention to your shares and their happenings in order not to be caught off guard.
When a stock is delisted, you can't trade publicly so if you would like to sell your stocks, you have to find someone yourself who is willing to buy it from you.
For delisting of stocks due to acquisition, there shouldn't be any issue as they will purchase your stocks, albeit at an offer price which might be lower/higher than your purchase price.
The management will have a mechanism for you to sell back to them, but at their dictated prices unless you're able to find a willing buyer in the open market which is tough.
First of all, find out why is it delisted.
If its due to buy out or privatisation, most likely your share would be bought over.
I do recall, there is cases that the company shares is dual-listed, and the shares is delisted in one market but continue to trade at the other market, they allow shareholders to switch their shares to the one traded in the market that they continue to list.
else if the company is declared bankrupt, and proceeding foreclosure, it’s theorectical worthless. Hence, no point thinking of selling. Unless there is desperate buyers that looking to buy. (It is very very unlikely, but I did encounter that before too)
But too avoid this problem, do follow up on the company periodically, like at least quarterly
AS mentioned by ELijah, you need to find a buyer on your own, thus it becoming known as over the counter stock.
also when delisted yoou will be given a share certificate to indicate how many shares you own of that delisted company
There should be an offer from the listed company to buy back the shares you own. This was my experience when Lee Metal was delisted some time ago.
Challenging since it is now not traded on the open market. You will need to find a buyer on your own.
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