In particular, I am interested in Norsk Hydro, which will shortly be delisted from the NYSE. What are the consequences of such a delisting?
2007-10-28 00:39:47 · 6 answers · asked by Coco 2 in Business & Finance ➔ Investing
The company is an 18 billion dollar conglomerate partially owned by the Norwegian state. It has had little trade in its stock in New York so is simplifying its stock availability to just Oslo and London.
It doesn't look like the company is going out of business any time soon, but I would be concerned if there were so few buyers and sellers of their OTC shares that the selling spread would effect the eventual selling price.
Is this the case with OTC shares in general?
What do you know about Norsk Hydro?
Thanks in advance.
2007-10-28 10:14:22 · update #1
Over he counter stocks are the most dangerous stocks to buy. Buying a stock that's recently been "de-listed" is just plain financial suicide.
Consider yourself warned.
2007-10-28 04:13:48 · answer #1 · answered by Common Sense 7 · 0⤊ 0⤋
I would say that Flyby is almost right! You've indicated that the stock is being delisted from the NYSE, and your question asks about an OTC stock. If it is safe to ASSUME the this position can no longer meet the NYSE listing requirements, then it must leave the list! If it moves to NASDAQ LISTED then it will just change symbols and start trading as usual. If it goes to the bulletin-board, then you may want to watch it a little bit more closely! NORMALLY, de-listing is not a good thing!
2007-10-28 01:12:51 · answer #2 · answered by da_zoo_keeper 5 · 0⤊ 0⤋
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2016-02-16 14:34:11 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It depends on whether you are talking about delisting on the NYSE exchange or going private. A company can be public without being listed on any exchange. Public companies must spend a lot of resources on compliance. They also come under a lot of scrutiny. I know of a few companies who have gone private to avoid all of the expenses and hassles of being a publicly traded company. A company can become delisted or simply go private. Your post isn't clear as to which you are referring.
2007-10-28 00:48:34 · answer #4 · answered by Flyby 6 · 0⤊ 0⤋
if a stock is about to be delisted, it means any investment in it will most likely be futile. There are many great companies out in the real world for you to consider.
2007-10-28 00:48:07 · answer #5 · answered by Mr. Prefect 6 · 0⤊ 0⤋
Liquidity is the biggest risk. They usually have a big spread and the slippage will kill you.
2007-10-28 01:27:20 · answer #6 · answered by Clown 3 · 0⤊ 0⤋