Delisting Risk
The chance that a stock gets removed from its exchange, often after breaching listing rules like a minimum price or market cap.
What it is
Delisting risk is the likelihood that a company's shares will be dropped from the exchange where they trade, such as the NYSE, Nasdaq, or TSX. It can be voluntary (a buyout or going private) or, more worryingly, forced when a company fails to meet listing standards. Forced delisting usually follows problems like a chronically low share price, too-small market cap, late or missing financial filings, or going-concern doubt.
Why it matters
A forced delisting often pushes a stock to thinly traded over-the-counter venues where it is harder to sell and prices can collapse, so it is a serious red flag for a position. The pitfall is treating a low price alone as the signal; delisting risk really builds when multiple problems stack up, like a sub-$1 price plus negative equity plus a qualified auditor opinion.
How it's calculated
It is not a single computed number but an assessment built from exchange listing rules versus a company's actual share price, market cap, shareholder equity, filing status, and auditor opinions.
How Quintarthai uses it
Quinn flags delisting risk as part of its deep analysis, pulling together the warning signs and showing a click-to-source receipt for each figure; see a company's analysis on the app.