What happens to my money if a stock I bought on Wealthsimple gets delisted?
Asked 2 years ago
People, I am super concerned about the money I made! I trade on Wealthsimple, and recently they announced that a stock would be delisted. A stock that I have invested in! What is going to happen to my investment? Will it be lost? Should I rather sell it before the delisting happens?
Monday, November 15, 2021
When a stock gets delisted, it means that it is no longer trading on any of the major stock exchanges.
Nothing happens to investors when the delisting takes place since their holdings remain the same, except that it is a sign that the company is on the decline.
That said, on the Wealthsimple trading platform, you will be paid in cash for every share you own. The funds are generally automatically deposited into your account.
And, yes, it would be wise to sell your shares ahead of the delisting since there is a good chance you would lose additional money on your investment.
Andia Rispah Igobwa
Tuesday, November 23, 2021
The delisting of stock means that the company is no longer trading on major exchanges.
It's important to note, though, investors will not experience any losses as their holdings. They'll remain unchanged except for one thing. It can be seen as having an intrinsic value lower than what they paid before because shares are now worthless without being traded again somewhere else.
Alternatively, sold at a market price could result in additional losses if you had bought ahead, expecting prices would rise over time but instead rose much faster than expected, leading you towards financial ruin!
So, keep up-to-date with what's happening, so nothing like this happens - do your research beforehand! Always that, be on the safe side!
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