What happens to a stock when a company is sold, or goes bankrupt?
For example, i bought a stock and the company went bankrupt, what happens to my stock? i also want to know what happens to a stock when a company is sold to another company, for example bellsouth.
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Ignore the answer from Grand Lake Bum.
Bankrupt – you may be out of luck. Usually stockholders get little or nothing when a company goes bankrupt. Depends on the assets and liabilities. If there are too many liabilities, all the assets are liquidated to pay debtors.
If the company is sold, the acquiring company offers to buy up the old shares of stock.
If you bought stock and the company goes bankrupt, you get a 1000 dollars per stock plus a 500 dollar stimulus package. Great question.
stock holders (owners) pretty much loose it all in bankruptcy. when sold, it depends on the deal.