Going Dark: The Harsh Reality of Voluntary Deregistration
by John Deysher
Investors werent the only ones fleeing the stock market last year. Companies also headed for the exits. And a growing number of investors are taking the hit as hundreds of small companies go dark or voluntarily deregister their shares. The result is often a falling share price and investors left in the dark about the firms finances and prospects.
What does it all mean?
When a firm goes dark it deregisters with the Securities and Exchange Commission (SEC) and delists its shares. Deregistered firms are no longer required to make SEC filings such as annual reports, proxies, 10-Ks, 10-Qs and other important documents. And theyre no longer required to have annual meetings or elect outside directors.
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