Having your stock suddenly get delisted from the Robinhood app can lead to a lot of panic in the market. Many might immediately start selling their stock, or they might be afraid their investments are stuck forever. In this article, you will learn about what to do when a stock gets delisted and how to deal with the developing situation.
What Does “This Stock Is Not Supported On Robinhood” Mean?
When you see the message “The stock is not supported on Robinhood”, it implies that the stock is untradeable on the platform. The stock may either be unsearchable or may be untradeable for the reasons listed below:
- The exchange has halted or paused trading.
- The respective stock was removed from the list of major exchanges and trades in the OTC market.
- It may be a foreign security which is not supported by Robinhood.
- The security is undergoing a corporate action.
Why Are Some Stocks Not Supported For Trading On Robinhood?
Some stocks are not supported for trading and therefore, will not give you options due to certain regulatory standards. A few of those standards are:
- Stocks have low prices.
- Stocks have low trading volumes.
- Stocks have low market caps.
Also Read: Robinhood Account Deficit
What Happens When A Stock Is No Longer Supported By Robinhood?
In case Robinhood delisted a stock, you will essentially not be able to buy it anymore and would be only given the option to sell it.
A user would no longer be able to check the prices of the stock anymore and check it elsewhere.
Penny Stocks Not Supported On Robinhood
Robinhood does allow you to trade in penny stocks on its platform. But, there are certain select penny stocks that are not supported on the platform for reasons such as low trade volume, prices, and market caps.
Why Are Some Stocks Not Supported On Robinhood?
Robinhood does not support Stocks because of the following reasons:
- The stock that was listed on an exchange has not halted its transactions.
- The company has now delisted itself from major trades and has shifted to the OTC market.
- The stock might be a foreign security, which Robin Hood doesn’t support yet.
- There is some major investigation being conducted into the stock.
Also Read: Why does Robinhood Need my Bank Login?
Robinhood Financial Supported Assets
Robinhood Financial Currently Supports the Following Assets:
- US Exchange- Listed stocks & ETFs
- Options Contracts for US Exchange- Listed Stocks & ETFs
- ADRs for over 650 globally listed companies
Robinhood Financial Not Supported Assets
Robinhood Financial Currently Does Not Support the Following Assets:
- Foreign-domiciled stocks
- Selected OTC equities
- Preferred stocks
- Mutual funds
- Bonds & fixed-income trading
- Stocks that trade on foreign exchanges
- Closed-end funds
- Limited partnerships
- Royalty trusts
- Tracking stocks
- New York registry shares
- Units
- All Spanish ADRs
- Chinese securities affected by the White House’s executive order from 12th Nov. 2020
Do You Lose Your Money If A Stock Is Delisted?
Essentially no, a stock owner doesn’t automatically lose money because it was delisted in Robinhood. However, considering that the app is one of the most popular platforms to buy stock, there is no stigma involved with it. You might find that the value drops because of how many traders only use the Robinhood application.
Also Read: How to Withdraw Money from Robinhood?
How Do You Sell Delisted Shares?
Once Robinhood delists the share, you can still sell it over the counter market using the application. If the stock is still in the stock exchange, you simply continue using it through non-Robinhood applications.
Is Delisting Good Or Bad?
Robinhood is one of the biggest platforms to sell and buy stocks so that it can cut companies off a considerable portion of the business. They might find it hard to raise money for their companies and will negatively affect the company.
Can A Stock Be Relisted?
Yes, it is possible to get relisted in the Robinhood application; however, the chances are relatively rare. If there is some way a company is breaking the protocols of the company, they can perform corrective measures and get their company back.
If the reason for getting delisted is due to market capitalization or bankruptcy, then they might find it much harder to be relisted.
Also Read: How to Remove Pattern Day Trader Status Robinhood?
Why Is Robinhood Not Letting Me Buy?
Here are a couple of reasons why you might not be able to buy a specific stock-
- You might not have enough buying power to invest.
- You cannot reach the equity required for a margin minimum.
- It might be that your transaction style has led to you being flagged by the Robinhood app.
- The account has been flagged as a Pattern Day trader.
Can Robinhood Sell Your Stock?
Yes, if you’ve taken up credit and haven’t squared with the Robinhood app, then they might sell your stock. The other reason may be that they are fiduciarily required to make the sale in the case of GameStop.
Also Read: Robinhood Day Trading Rules
Final Thoughts
Having your stock get delisted from the Robinhood application isn’t necessarily as bad as you might worry about. There are still ways you can sell your stock and get back most of your investment back. You can also wait for it to get relisted in case of a technical glitch.
