How do I deal with delisted chinese stock?
Asked 5 years ago
I have CHL in an ira with TD Ameritrade, but they haven't been able to help me. Has anybody dealt with owning shares of a delisted stock?
Andrew Moran
Wednesday, July 21, 2021
When a business is delisted from a major stock exchange, like the New York Stock Exchange or the Toronto Stock Exchange, investors continue to legally own their shares, despite possessing very little value.
That said, it does suggest that something is wrong with the company's fundamentals. The company could be facing bankruptcy or the firm has failed to meet the exchange's minimum financial requirements to continue being listed.
Indeed, a stock that is trading below $1 for an extended period is generally frowned upon by the exchange.
The next step is to determine how to sell your delisted shares. This is achieved by selling them on the over-the-counter bulletin board (OTCBB) or on the pink sheets. Generally, you can still sell your shares on your brokerage account like you would any stock.
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