What happens if my stock is delisted?

A stock can be delisted from etoro or the exchange for a variety of reasons. Here is a list of the most common scenarios and how we handle them.

Merger and acquisition (M&A)

This type of corporate event is the most common reason for delistings. Each event is unique and can be very complex. See our dedicated page for detailed information on how these deals can affect shareholders.

Bankruptcy

When a company files for bankruptcy, its assets are sold to settle its debts. Since the shareholders have the lowest priority for repayment, the shares often have little or no value at the end of the process. 

During this period, company shares may be traded. The exchange and company decide on a case-by-case basis whether to continue trading in those shares. In case the exchange does not support trading regularly, you won’t be able to trade the asset on etoro.

ADR termination

American Depositary Receipts (ADRs) allow US investors to invest in foreign companies and foreign companies to access the US market. They are issued by US depositary banks and listed on US exchanges.

Occasionally, a company may decide to terminate its ADR programme. In these cases, shareholders receive a payment representing the value of their holding, after which positions are closed according to the payment price, and the asset is delisted from the platform.

The company does not set a timeframe for distributing the payment, so in some cases, the ADR may be terminated prior to the payment being made. During this period, the position will remain in your portfolio and cannot be closed until payment is received and the stock is delisted.

Moves to an unsupported exchange

Companies may transfer their stock to an exchange for which etoro does not support pricing and execution.

We will inform you of the delisting when it occurs and positions will be closed at the average liquidation price, which is the total cash received when liquidating all shares involved in an event, divided by the total number of shares.

No longer meets listing requirements

Companies must meet specific requirements to be listed on an exchange, such as a minimum share price. Companies that fail to maintain these minimum standards will be warned of their non-compliance by the exchange and may eventually be delisted if they do not meet the standards.

In the event of a delisting from the exchange, your positions remain open in your portfolio but can’t be traded. Each scenario is unique and handled on a case-by-case basis. We will communicate any updates to shareholders.

Tender offer

A tender offer is when an individual or entity offers to buy the majority or all of the shares of a company. If successful, the asset is delisted from the etoro platform. We have more information in this article.