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The delisting of iLiveperson from NASDAQ carries a range of consequences for both investors and the company itself. For investors, the most immediate impact is on the liquidity of their shares. **Shares typically trade less frequently** in the over-the-counter (OTC) market, which can make it harder to buy or sell shares quickly. This lack of liquidity can also lead to wider bid-ask spreads, increasing the costs of trading. Investor confidence can also take a hit. Delisting is often seen as a negative sign, reflecting issues with the company's financial health or prospects. This could lead to a decline in share prices and a reduced willingness among investors to hold the stock. For iLiveperson, the delisting can impact its ability to raise capital. Being listed on a major exchange like NASDAQ provides access to a broader investor base and can make it easier to issue new shares or bonds. Delisting reduces these options. It can also affect the company's reputation and visibility. A company delisted from NASDAQ may receive less media coverage and may not be included in major stock indexes, further reducing its visibility. Delisting can impact employee morale, potentially leading to challenges in attracting and retaining talent. Moreover, it can impact the company’s relationships with customers, partners, and other stakeholders, who may see it as a sign of instability. Ultimately, the delisting process poses significant challenges that require strategic management to stabilize operations and reassure stakeholders.
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