What is delisting? #shorts

[0:00]Typically, companies get delisted for regulatory violations, financial instability, or other red flags, but there's also voluntarily withdrawing as a strategy, for example, if a company wants to go private. If you own shares in a company that gets delisted, you do still own them, but the way that you trade them changes significantly. So shares move to over-the-counter markets or OTCs. Now, these are decentralized and have less regulatory oversight than the traditional exchanges. So you'll have to do more due diligence as an investor. Now, the OTC Markets Group operates three tiers of OTC markets with varying levels of financial standards and oversight. OTC QX is the top tier, followed by OTC QB and then the pink Open market. Now, keep in mind these transactions go through networks of dealers who then provide quotes to brokers, who then negotiate directly with each other. So of course with that in mind, trades like this do tend to take longer. They also have lower trading volumes and they tend to be more volatile.