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Abolition of listing is that companies cannot buy or sell stocks on the stock exchange.
In other words, it refers to the state that can be removed from the market such as the Toshin,市場DAQ, and NYSE.
When the listing is disco ed, the liquidity of the stock is greatly reduced, and the stock price may be。d.
In this article, we will organize the reasons for delisting, impact on investors, and attention.
What is listed?
Listing is a state where anyone can buy and sell in the stock market.
In Japan, there are Tosho Prime, Tosho Standard and Tosho Growth.
When a company is listed, it is easy to raise funds from investors, and it can lead to improvement of reputation and credibility.
What is abolished listing?
Abolition of listing is to be removed from the stock exchange.
If the listing is disco ed, you will not be able to buy or sell the stock market.
Therefore, it becomes easier to become the following state.
- Not sold when you want to sell
- Less buyers
- Increased stock price
- It makes it difficult to catch up
For investors, not only price ctuations, but also the risk of selling.
Why is the listing abolished?
There are two types of fish.
| Type | 内容 |
|---|---|
| Negative | Management deterioration, fraud, and undetermined standards |
| Positive | MBO, a wholly owned subsidiary, re編ed |
Even if the same listing is disco ed, the impact on investors will change greatly depending on the background.
Negative listing abolished
Special attention to beginners is due to business deterioration and fraud.
The following are examples.
- Override
- ud Accounting
- Market Cap
- Low stock price
- Long-term unlisted maintenance standards
In these cases, stock prices may be lowered before the listing is closed.
What is excess debt?
Excessive debt is a state in which the debt exceeds the assets.
The calculation formula is:
Net assets = assets - abilitiesInc ing financial risk when net assets become negative.
Of course, it is not immediately bankrupted because of the excess of the debt, but the financing power and credibility are much easier to fall down.
Positive listing abolished
It is not necessarily a bad thing.
For example:
- MBO
- Made a wholly owned subsidiary by a parent company
- Management integration and restructuring
In this case, shareholders may be able to sell shares at the acquisition price.
There are cases where prices with premiums are presented on the market and stock prices are rising.
Therefore, it is important that you do not decide as a mechanically negative material just by delisting it.
What happens when the list is disco ed?
Easy stock price
In the market, the risk of being sold is strongly conscious.
In particular, after designated as a supervisory symbol or a consignment symbol, it may be rushed in a short period.
Reduces fluidity
Liquidity is easy to buy and sell.
After the listing is disco ed, the buyer may be decreasing.
Even with the price, there is a possibility that you can not sell at the price you think.
Value can be zero
Not completely zero.
However, in the case of corporate liquidation or bankruptcy, the shareholder is a close position at the end of the repayment deadline.
In other words, if the assets remain after repayment to the creditors, the value of the shares may be zero.
Risk signs to be considered to investors
To identify the risk of delisting, check the following signs:
ENGLISH
Please note that companies whose deficits last a few years.
In particular, it is important to note that the deterioration of the sales cash flow or cash reduction occur at the same time.
Override
Example of financial deterioration
It is a point that you want to confirm the decline in the capital ratio.
Supervised Brands
This is a state to inform investors that the risk of delisting is increasing.
It is often displayed on the screen of the securities company, and it is necessary to be more careful than the standard stock.
Undetermined
If the condition that cannot meet the listing maintenance criteria continues for a long time, it will be subject to improvement requests and grace period.
In terms of market capitalization, distribution stock, and shareholder count, it is easy to determine that the market classification is confirmed.
Easy to misunderstand for beginners
A common misconception is the idea of "safety because stock price is low".
For example, 100 yen shares and 50 yen shares may be interwoven with the decommissioning risk and financial anxiety.
It is important that the financial structure is not the cheapness of stock price.
Because it is low stock, it is safe and high stock, so it is dangerous.
What is the listing maintenance standard?
Stock exchanges have standards for maintaining listings.
For example:
- Number of shareholders
- Stock Information
- Market Cap
- Governance and Disclosure
Undetermined standards may lead to submission of improvement plans and warnings from the market.
However, it is important to check the latest rules of exchanges in actual investment decisions because specific基準marks vary depending on market segments, countries, and system changes.
- Disco ed listings are not available on the market
- Causes are fraudulent, deficit, unstandard, MBO, etc.
- Negative listing abolishment is high risk of stock price
- Note that excess of debt or deficit co ity
- Low stocks are not necessarily discounted
In investment, it is important to see the financial structure and business事業 that can maintain listings rather than stock price.