Why do the shares of publicly-traded companies get delisted?

A listed stock or other security can be delisted by the stock exchange, or at the request of the company itself. Reasons for delisting include:

• The delisted security no longer exists. It has been called for redemption by the company (a preferred share) or substituted for another security as a result of a merger.
• The company has no assets or is bankrupt.
• The public distribution of the security has fallen to an unacceptably low level.
• The company has failed to comply with the terms of its listing agreement with the stock exchange.

The Toronto Stock Exchange includes insolvency, unsatisfactory financial condition and/or operating results as reasons as to why a stock may be delisted from that exchange. A stock may also be delisted by the exchange if a company substantially discontinues its business or changes the nature of its business. Delisted TSE companies typically have been suspended from trading for the 12 months prior to delisting, and have not received reinstatement approval. They could still trade on other markets or over-the-counter through the Canadian Dealing Network if the company applies for a quotation.