The embattled stock of Alibaba Group Holdings (NYSE: BABA) hit more turbulence recently when the U.S. Securities & Exchange Commission listed the company as a potential candidate for delisting from the New York Stock Exchange.

Delisting is a big deal, but investors shouldn't panic. Here are the facts you need to know and what it means for the stock and its shareholders.

Foreign companies that list on U.S. stock exchanges require auditing from the Public Company Accounting Oversight Board, which the Securities & Exchange Commission (SEC) oversees. This stems from a law passed in 2020 that aims to prevent foreign companies from falsifying information or other improper tactics.

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Source Fool.com