Nyse Penny Stocks

[mage lang="" source="flickr"]nyse penny stocks[/mage]
What happens to shareholders of common stock if that stock on the NYSE falls below $1 and gets de-listed?

A friend of mine said the shareholder is out whatever stake in stock he had. I said the stock and company still exist as does the value at the time it is de-listed (not counting a possible C11 bk later). It may be tough to be relisted again and may fall into the penny stock category (highly risky and volatile) but is not the end of the shareholders money. Who is right?

You are right, technically. If a stock is de-listed it goes on the Pink Sheets but those stocks aren’t worth hardly anything as no one substantial buys them. So technically you still own the shares (I know my broker won’t even deal on the Pink Sheets so how I get access to them is beyond me!) but they are good as gone because they’re usually worthless.

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