How to handle delisted stocks on Sharesight

Delisted stocks

Stocks are delisted once they are removed from the stock exchange. This can occur either voluntarily, as a strategic or financial decision made by the company, or involuntarily, when the exchange requires the company to delist. Stocks get delisted due to a variety of reasons, such as not meeting listing requirements, going private, or undergoing a merger or acquisition etc. Once a stock is delisted, it is no longer available for trading on the exchange.

How to handle delisted holding in Sharesight

Delisted holding needs to be manually actioned on your Sharesight portfolio. The steps varies depending on the reason/outcome of delisting. Usually, once the stocks are delisted, you receive either cash payment, or stocks of the new company, or both, or none in exchange for the shares you previously held. Please follow the steps below to handle each of these outcomes on your Sharesight portfolios:

1. Received a cash payment:

   • Add a sell trade at the offered price to close off the position of the delisted holdings.

2. Received a share of a new company:

   • Use a merge feature to convert you delisted stock to the new Stock.

3. Received both cash payment and shares of a new stock:

   • Add a ‘Return of Capital’ trade for the cash portion.

   • Then use the merge feature to convert your holding to the acquiring company at the announced ratio.

4. Received neither cash payment nor shares of a new stock:

   • Add a sell trade (at price = $0) to close off the position and claim a loss on the delisted stock.

The guide above is a suggestion on how to handle the corporate action in Sharesight and is not finance or tax advice. We advise you to consult your financial advisor or accountant. We also encourage you to review the official Documents for full details*.

Last modified on September 25, 2024 UTC