What is delisting and its types that investors need to know

Rancakmedia.com – Have you heard the word Delisting? If not, have you ever thought about what Delisting is? Here in the article below we will discuss it. Places to invest in stocks are often referred to as the capital market or the Indonesian Stock Exchange (IDX).

Investments can be made via the mobile app, but new investors, in particular, should understand the basics stock investment first.

To avoid mistakes when investing in stocks, make sure you understand every phrase involved.

In addition, companies that are in the capital market will not always be there. In other words, a company may leave the Indonesian Stock Exchange (IDX) records.

Therefore, so that you are not fooled in choosing a company, you must be able to understand and understand what delisting is.

What is Delisting

The term delisting is often heard when someone invests in stocks because this term refers to the removal of a company from the list Indonesia stock exchange (IDX).

By removing the list of a company from the IDX, its shares cannot be used in transactions on the capital market.

Thus, delisting is an act of delisting company shares on the Indonesia Stock Exchange (IDX).

If a company already has a delisted status, generally the company will no longer be listed as a public company.

In addition, companies that are no longer part of a public company will not use the Tbk status. at his company.

Company shares that are no longer listed on the IDX can be caused by various things. Thus it can be said that delisting will change the status of a company that was previously listed to a company that is not listed on the IDX.

Companies that have been delisted from the IDX are still possible to be re-listed as companies whose shares are traded on the IDX.

However, in order to return, the company must comply with the terms and conditions that apply. It takes at least six months for a company to qualify to be listed on a company exchange.

Therefore, stock delisting is often recognized as one of the dangers that must be taken by investors after they are sure to invest in the stock capital market.

So, for those of you who want to invest in stocks, you must always observe and understand companies that really continue to show lucrative income. Investing in stocks carries a certain amount of risk, and these can be reduced.

Types of Delisting on Shares

Basically there are two types of delisting, namely voluntary delisting and forced delisting. Both types are classified depending on the nature of the delisting. Below will be further detailed about the types of delisting:

1. Voluntary Delisting

Voluntary delisting is voluntary delisting of shares or the issuer itself has requested delisting due to certain circumstances.

In general, this type of voluntary delisting occurs when there is a merger (takeover or merger) of companies to strengthen cooperation, there is a new controller in a company, and other reasons.

Nonetheless, voluntary delisting is generally referred to as positive delisting because there is still an obligation to absorb shares in the community at a price that is quite acceptable, so that shareholders do not need to worry.

Voluntary delisting can also be seen as a sign that the company's finances are not in the best condition, or the company's management (delisting) is ineffective, in this case the company's performance is hidden.

2. Forced Delisting

Delisting by the Indonesia Stock Exchange (IDX) based on current regulations is known as "forced delisting".

So, in this type of delisting, business shares will be written off if the company violates various relevant criteria.

As for the regulations that were violated, such as the company not providing financial reports, so that shares were frozen for two consecutive years, the business that the company ran was unclear, so that the company's operations continued to be questioned, and other violations.

However, before the company's shares are withdrawn from the capital market, the IDX will send a notification of non-compliance to the company.

Thus it can be said that the shares of companies that have been delisted are companies that are in trouble.

In contrast to voluntary delisting or voluntary delisting which is still considered positive, forced delisting is a delisting which is considered negative, why is that?

This is because stock investors who have shares in forced delisting companies generally suffer losses.

FAQs

Below we have summarized some frequently asked questions about delisting, as follows:

If a Stock Is Delisted, Is It Money Back?

Delisting is the exit of the issuer from the list of listed companies on the capital market to return to being a closed company so that its shares cannot be traded. The IDX emphasized that issuers wishing to be delisted must return public investors' money.

Conclusion

The term delisting is often heard when someone invests in stocks because this term refers to the removal of a company from the list of the Indonesian Stock Exchange (IDX).

In the article above, we not only provide an explanation of what Delisting is, but we also provide types of delisting.

Thus the article about What is Delisting, Stock Investors Need to Know. Hopefully the above article can be useful and helpful for all of you.