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What happens to index fund’s holdings of stocks that are de-listed?
I'm curious about what happens to an index fund's holdings when a stock is de-listed. Do they just sell it off or is it more complicated than that?
That's a great question! When a stock is de-listed, it means it is no longer being traded on a stock exchange. In most cases, index funds will typically sell the de-listed stock and reinvest the proceeds into other securities that are still actively traded.