What happened if the company want to quit from stock market? What happened to investors who bought/shorted that company?
Companies delist when they want to expand or restructure or the promoters wants to raise their stake or when they are acquired by others. It can be a voluntary decision where a company pays investors and removes its securities from the exchange or a forced delisting by stock exchanges for non-compliance with their rules.
To delist voluntarily, a company normally offers shareholders a
premium to the price at which the shares are being traded on the
exchange. When an investor sells to a promoter wishing to delist,
the transaction is not done through exchange.
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