FiscalNote shares to be delisted from NYSE; stock falls

NYSE delisting is among the most catastrophic corporate events for equity holders. Delisted shares migrate to OTC/pink sheet markets where institutional mandates prohibit ownership, forcing systematic selling pressure with no natural institutional buyer base. Bid-ask spreads typically widen 10-30x versus exchange-listed equivalents, destroying execution quality and creating severe liquidity traps for existing holders. Historical base rates show 60-85% of delisted companies eventually file for bankruptcy within 24 months of delisting, with median stock performance of -70% in the 12 months post-delisting. The -15% intraday move likely understates the eventual downside as forced institutional liquidation cascades over subsequent sessions. This is a pure capital preservation situation — the risk/reward for any long position is asymmetrically negative. ⚡ DEEP SONNET: NO LONG ENTRY — avoid entirely. If short exposure already exists, cover on any liquidity spikes. Do not initiate new short positions post-delisting due to borrow collapse risk and OTC pricing irregularity. | TP:0% SL:5% | Immediate to 30 days — exit any existing exposure within 1-3 sessions while residual liquidity exists | Risk:HIGH — Delisting eliminates institutional demand entirely, creates forced selling overhang, elevates bankruptcy risk to near-term probability event, and destroys price discovery mechanisms. Liquidity risk is extreme. Any existing long positions face catastrophic mark-to-market losses with minimal ability to exit at quoted prices. Short positions, while directionally correct, are extremely dangerous due to borrow availability collapse and erratic OTC pricing. | Sizing:CONSERVATIVE