Going Dark: The Harsh Reality of Voluntary Deregistration

    by John Deysher

    Investors weren’t 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 firm’s 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 they’re no longer required to have annual meetings or elect outside directors.

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