What happens to a stock if it does not meet the respective exchange's minimum criteria?

If a stock does not meet the respective exchange's minimum criteria, it may be delisted from that exchange. This process occurs when a company's shares fail to comply with the exchange's requirements, which can include minimum share price, market capitalization, or financial reporting standards. Delisting can have significant implications for the stock, including reduced visibility to investors and possibly decreased liquidity, as trading will no longer occur on the primary exchange where the stock was listed.

Companies often have a specific timeframe to rectify the deficiencies that led to the potential delisting, such as improving their financial standings or stock price. If they are unable to do so, they may face permanent removal from the exchange, which can severely impact their market perception and the ability for shareholders to trade the stock in an efficient manner.

The other potential outcomes mentioned do not accurately reflect the consequences of failing to meet exchange criteria. For instance, stocks do not simply receive a temporary hold; this action usually applies to stocks under scrutiny or pending investigations. Being listed on other exchanges is not guaranteed; the company must satisfy requirements for those exchanges as well. Finally, a stock that is not meeting criteria typically does not see an automatic increase in value; in fact, falling out of compliance often signals problems that could lead investors