Q&A about FRC delisting

Why I can't buy FRC？
FRC recently changed its trading symbol to FRCB on May 3rd. If you're interested in buying or closing your positions for FRCB, you can do so now. However, it's important to note that opening new short positions is currently not supported. Also, be sure to choose Regular Trading Hours when placing your orders. One thing to keep in mind is that buy-to-open positions only support limited orders.

Why FRC was delisted？
First Republic Bank collapsed and was seized by regulators, who subsequently accepted a bid from JPMorgan Chase to acquire almost all of its assets. The bank had been struggling for weeks, and regulators took control after it was determined that the bank was conducting business in an "unsound manner." First Republic's collapse follows the seizure by regulators of two other banks, Silicon Valley Bank and Signature Bank. JPMorgan Chase is acquiring $92 billion in insured and uninsured deposits as well as $173 billion in loans from First Republic. The shareholders are likely to be wiped out, and the FDIC estimates the cost to the Deposit Insurance Fund at about $13 billion.

Impact of FRC's delisting
One of the most significant impacts is that FRC stock will no longer be traded on major stock exchanges, making it difficult for investors to buy and sell shares. This lack of liquidity may cause the stock to become more volatile, making it more difficult for investors to predict price movements.

Furthermore, delisting may cause FRC to lose visibility and credibility in the market, which could lead to a decrease in demand for its shares. This may result in a decline in the company's valuation and, as a result, a decrease in the value of shareholders' investments.

Additionally, if FRC decides to go private, shareholders may be forced to sell their shares back to the company at a price that is lower than their original purchase price. This is known as a forced buyout, and it can be a significant loss for shareholders who had expected to hold their shares for a longer period.

Overall, FRC's delisting may have negative consequences for investors, and it is important to carefully consider the potential risks before investing in a company that has been delisted.

What do I do after delisting？
If you want to buy FRC stock, you can still do so using its new trading symbol FRCB. You would need to buy and sell it through the OTC market, which can have higher trading costs and lower liquidity than major stock exchanges. Researching and considering the risks before investing in any stock is important.

If you held FRC shares before delisting, you will still own those shares after delisting. However, because the stock is no longer listed on an exchange, you may find it more difficult to sell your shares, and the price of your shares may be subject to greater volatility. You may need to find a broker or trading platform that allows you to trade in over-the-counter (OTC) markets, where FRC shares may still be available for trading. Additionally, if FRC undergoes a corporate action, such as a merger or acquisition, receiving any payouts or converted shares may be more complicated or delayed due to the delisting.

What is OTC？
Over-the-counter (OTC) trading is the process of trading securities via a broker-dealer network instead of a centralized exchange like the NYSE. OTC securities include stocks, bonds, derivatives, ADRs, foreign currencies, and cryptocurrencies. Companies that do not meet the requirements to list on standard market exchanges can trade OTC, but may still be subject to some regulation by the SEC. OTC trading promotes equity and financial instruments that would otherwise be unavailable to investors.

It's important to note that investing in stocks on the OTC market can come with higher risks and costs compared to trading on a major exchange. These risks include lower liquidity, higher volatility, and the potential for fraud. It's always recommended to do thorough research before making any investment decisions, especially when dealing with delisted stocks or the OTC market.