How stocks investors should respond when they hear of a company delisting from stock exchanges. Here is some sage advice by eminent stock market expert, Mohit Satyanand. FundooMoney website: www.fundoomoney.com
Edited Highlights UDAYAN RAY In this particular segment, we are going to be discussing some of the things that people need to keep in mind when they get to hear a delisting announcement. Now what is delisting? What should an investor be making out of a delisting announcement, whether the person is already in a stock or was actually looking to invest in that particular stock? To help us understand this we have with us stock market expert Mohit Satyanand. Hi Mohit!
MOHIT SATYANAND Hi Udayan!
UDAYAN RAY Mohit, delisting, from what I understand, is that the company wants to get away from the stock exchange. What are the implications for a regular investor who is already into that stock or somebody who is eyeing that stock? MOHIT SATYANAND If a company is going to delist don’t eye the stock. Because for an ordinary retail investor, if a company decides to delist you really have no option but to sell the stock back to the management. There are big investors who make a lot of money when the delisting is about to happen, but that’s for the big boys. And that’s for somebody who can either by virtue of his own holding, or by virtue of clubbing together with other people, who have substantial holdings actually hold a chunk which is large enough to force the company to deal with them and negotiate a price separately. But for any ordinary retail investor delisting really leaves you with no option but to offer those shares to the company at the price that they have notified.
UDAYAN RAY Well that’s very straightforward, nice and simple. That’s particularly the way we want the series to be. Hope we haven’t missed out anything. Just in case we have what are you waiting for? There’s a comments section down there. Go right ahead and give a comment. If you’ve liked the video click on the like button and of course we’d love to have you subscribe to our channel. And of course, please stay connected with us on all leading social media platforms.
