The Strategist

Analysts: 179 companies left major US exchanges in 12 months

12/08/2021 - 07:38

According to research firm Finbold, 179 businesses have departed the two main US stock markets, the New York Stock Exchange (NYSE) and the NASDAQ, in the last year.

Ajay Suresh
Ajay Suresh
The overall number of issuers on these exchanges is at 6,000, down about 3% from the previous year. The NYSE companies were the most commonly delisted, with a 15.3 percent fall in the number of businesses listed there, from 2,873 to 2,434. At the same time, new firm listings increased the overall number of issuers on NASDAQ by 7.9%, from 3,306 to 3,566.

The inability of a number of companies to comply with the NYSE and NASDAQ's severe listing standards owing to economic concerns, such as maintaining a minimum share price and selling levels, is one of the main reasons for companies leaving the exchanges, according to researchers.

Furthermore, some corporations have chosen to quit the major US exchanges in favor of alternate trading platforms, such as Asian exchanges. Increasing pressure from Chinese regulators may be the cause of increased delisting from US exchanges in the case of Chinese corporations. Didi Global, China's largest online taxi service, announced its exit from the New York Stock Exchange last week.