When a stock is delisted, investors can still trade the shares, but typically in the over-the-counter (OTC) market. The delisting of a stock from a major exchange like Nasdaq or the New York Stock Exchange (NYSE) does not immediately cease all trading activity. Instead, the stock often moves to the OTC market, where it can continue to trade on platforms such as OTCQB or OTC Pink.
However, it's important to note that trading in the OTC market usually lacks the liquidity and regulatory oversight that is present on a major exchange. This means that investors may face challenges in buying or selling the stock, and the prices may be more volatile. Additionally, the delisting of a stock is often seen as a negative signal, indicating potential issues with the company's financial health, which can further deter investor interest.
In the case of Edible Garden AG (EDBL), which faced delisting from Nasdaq due to its failure to meet the minimum bid price requirement, the company's stock continued to trade in the OTC market after the delisting. This allowed investors to still trade the shares, but under different conditions and with varying levels of liquidity and regulatory oversight compared to a major exchange.