Reasons for a delisting from the US stock exchange
A key factor in delisting from the US stock exchange was the cost savings associated with complying with US accounting and regulatory requirements. These regulations and requirements came at a significant financial cost, which was an unattractive burden for many companies. Additionally, insufficient trading volume on the US exchange resulted in less liquidity and limited trading opportunities, further reducing the attractiveness of the exchange for some companies.
Another reason for the delisting, especially of German companies, was the strategic focus on the European market. They chose to list their shares exclusively on European stock exchanges in order to gain a better presence, strengthen their market position and better target European investors.
Delisting from the stock exchange can occur both on an involuntary basis, such as in bankruptcy, and as a result of a merger or acquisition when the shares are no longer traded separately. This enables companies to clarify their financial situation, restructure business operations and secure the interests and future direction of the company.
Conclusion
Ultimately, the decision to list on the US stock exchange is a complex consideration of various factors, including cost, liquidity, market focus and strategic objectives. Each company makes this decision individually, based on its own situation and the needs of the particular market in which it operates.