What happens to delisted stocks? (on Trading212 Invest / ISA, not CFD)?
@freezefrank It highly depends on why it was delisted (acquisition, bankruptcy, liquidation, etc…).
If the company gets liquidated, we do the same with the positions.
If it continues trading OTC, we used to close out all positions at the best price that we can get for shares over-the-counter. However, now we’re aiming to offer OTC trading within a few months so that we don’t have to close out any positions.
Thanks David - i’m thinking about the potential delisting of chinese stocks (e.g. BABA). Good to hear that OTC trading is in progress… would be disastrous to have to get firesale these shares at steep discounts in the (hopefully unlikely) event of delisting.
As a side note that handling of Raytheon wasn’t ideal (prior RTN holders had their shares force sold after the merger at some non-transparent price while UTX holders kept their shares in the combined company). Would be great to have some transparency ahead of foresseeable events (e.g. mergers) in the future!
Do we get a choice whether or not we want our positions to be closed when they go to OTC?
@David I have a small short position open with Hertz who have just been delisted. So the ticker is frozen.
Will it just close automatically at some stage, don’t need to worry about doing it myself?
Same question about LK?
I second this. Being liquidated automatically at a very bad price is infuriating, especially if you could have held onto your position for the long-term and made a good profit.
you get liquidated if the company was. in that scenario there was no long-term profit to be made.
now they are looking to add OTC access so your holdings are untouched. David says this literally just a few posts above yours.
I was referring to being liquidated despite OTC, but thanks.
Do you think this will be the case with NMC? I guess it depends on what the administrators do with the business? Or should the stocks be available OTC already?