Why does a stock get delisted

A stock can get delisted for various reasons, including:

1. Voluntary Delisting: A company may choose to delist its stock from a stock exchange voluntarily. This can happen when a company decides to become private or when it is taken over by a private equity firm.

2. Involuntary Delisting: Involuntary delisting occurs when a stock is removed from a stock exchange without the company's consent. This can happen if a company fails to meet the minimum listing requirements set by the exchange, such as the share price requirement. If a company's stock price falls below $1 per share for a period of months, it may be at risk of being delisted.

3. Merger or Acquisition: Sometimes, delisting can happen as a result of a merger or acquisition. When a company is taken over by another publicly traded company, the newly formed entity may choose to delist the target company's stock.

It's important to note that delisting can have significant consequences for a company, such as a decrease in investor confidence and a potential loss of market value.