Why Public Corporations Delist Their Shares From Stock Markets To Become Private Corporations

Many public corporations choose to be on an earnings treadmill to satisfy Wall Street’s appetite. They believe they must provide quarterly earnings estimate publicly (guidance) or their shares won’t trade at their optimal values. Therefore, they focus on next quarter’s earnings, which better be accurate! Otherwise, the “market” might clobber their shares. instead of ignoring Wall Street’s quarterly earnings desires, and remain public, some firms delist their shares!