What occurs when stocks fall below the minimum requirements to be listed on an exchange?

When stocks fall below the minimum requirements to be listed on an exchange, they can indeed face automatic delisting from that exchange. Stock exchanges have specific criteria that companies must meet to maintain their listing, which generally include minimum share price thresholds, market capitalization, or financial health indicators. If a company's stock price dips below the established minimum for a continuous period, it can trigger a delisting process.

Delisting can significantly impact a company's visibility and ability to raise capital, as being on a major exchange provides benefits such as increased liquidity and investor interest. In situations of delisting, the exchange typically provides a grace period for the company to regain compliance before the actual delisting takes effect. This ensures that companies have some time to rectify their situation.

Other options relate to different scenarios that may occur following a decline in share price, but they do not directly reflect the immediate consequence of falling below minimum requirements. Thus, the direct and most applicable outcome is that the stocks may be automatically delisted if they fail to adhere to the standards set by the exchange.