Hertz Stock Delisting: What Does it Actually Mean?

If you're feeling confused about the roller coaster that has been Hertz (NYSE: HTZ) stock after it rocketed nearly 900% from its lows despite filing for bankruptcy protection, you're not alone. At a time when investors are grappling with what actually happens during a bankruptcy process, Hertz has been notified by the New York Stock Exchange that it will be delisted. What does that mean for investors, exactly? 

The first important thing to note is that when a company is delisted from one of the major stock exchanges, nothing directly happens to a shareholder. Investors still hold the same percentage of the company and the same amount of shares that they owned prior to the delisting. Further, while delisting is generally viewed as a negative development because the stock becomes less liquid due to fewer investors being able to trade the stock, the shares can still be traded "Over-the-Counter" (OTC). OTC exchanges often have more relaxed regulations compared to the New York Stock Exchange and other major exchanges.

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Source Fool.com