Stocks are being delisted from the NYSE at alarming rates.

Trading was suspended and delisting procedures started for more firms' stocks "for cause" last month than in the whole of 2007. For cause means either because of bankruptcy, because the share price has fallen below the minimum requirement for listing of $1 minimum bid per share, or the firm's market capitalization has fallen below $25 million.

In 2007, 21 firms were delisted from the NYSE for cause, only 14 were delisted in 2006 and 21 in 2005. The year 2000 saw 61 firms' stocks delisted for cause and 2001 and 2002 saw 65 and 62 stocks removed from the list respectively.

This year, 25 firms were delisted in the month of October alone, and 19 were delisted in September. November looks to continue the trend, with 13 firms already removed from the list according to a NYSE Regulation representative.

Stocks that have been suspended by the NYSE are officially delisted by the Securities and Exchange Commission (SEC) within 10 working days. These stocks may continue to be traded on other markets such as ECNs as penny stocks, although NYSE does not track them once they are removed from its list.

Once a firm's stock has been struck off the list, it is an uphill struggle to get back on. Getting listed on the NYSE requires a minimum market capitalization of $100 million, whereas a firm that is already listed only needs to maintain market cap above $25 million. "It's easier to stay listed than to get listed," the NYSE Regulation spokesperson says.

Year - number of delistings for cause

2000 - 61
2001 - 65
2002 - 62
2003 - 41
2004 - 18
2005 - 21
2006 - 14
2007 - 21

Septmber 2008 - 19
October 2008 - 25