Delisting is the process of removing a company's stocks from trading on the exchange. In the case of U.S. company stocks, this often occurs as a result of a merger or acquisition by a larger company. In such cases, the shareholder receives shares of another company.*
*For convenience and quicker settlement, instead of receiving new shares (which may not yet be available on the platform), clients receive the cash equivalent of the value of the new shares.
Example
The company Xilinx was acquired by AMD, causing XLNX shares to stop trading. For each XLNX share, shareholders received 1.7234 AMD shares (in our case, 1 AMD share and the fractional part as a cash equivalent).
Thus, a holder of 100 XLNX shares would receive 172 AMD shares and $38.85 (representing 0.34 fractional shares valued at $114.27), while the current XLNX shares would be removed (cancelled).