If a company that is available through Freetrade on AIM is delisted from AIM, but still trading on NASDAQ, what happens to my shares when the company delists?
You still own your shares when a company delists. To sell them you will have to use OTC trades … chat with your broker.
Whether those shares are worth anything or not has a lot to do with whether the delisting is voluntary or forced. If forced then probably there is a bankruptcy issue. If voluntary then the company may offer you cash, bonds or something else. I’d contact your broker and/or look at the companies investor site.
BTW, it is entirely possible that a share price could rise because a company announces it is delisting (depends on the reason for the delisting …)
Thanks for the answer. I’m talking about the case where the delisting is voluntary and American Depository Shares are being offered in exchange for ordinary shares.
My broker is Freetrade, which is why I’m asking here
I basically want to know whether Freetrade normally handles this kind of thing automatically. So, would they make available the NASDAQ version of the shares? Or would I need to sell then re-buy on an exchange that supports the NASDAQ listing?
If an ADS is being offered then you should see a swap out if it is “compulsory” (meaning that you will just see the new shares appear in your account). Now, I should be careful here … of course it implies that FreeTrade offer that Nasdaq share. So you you really need to directly contact Freetrade via the app chat and they will tell you what they are doing and or can do for you.
Sorry I can’t be of more help
You would need to ask freetrade. They don’t support all types of corporate actions yet