What happens to my stock if a company goes bankrupt?
I own stock in a company that is facing bankruptcy. Will I lose my stock if the company is acquired by another company or will I lose my stock if they go bankrupt and do a reorganization settlement/agreement with their creditors?
Related Blogs
- Malaysia Stock Market Online Portal Review | Investing Blog
- Coalition to challenge Google Books settlement — inawater.com
- Selling On Ebay | Selling Stock
- Recent Bankruptcy? It's Not Impossible to Obtain a Home Loan …
- reorganization
- Debt Settlement and Your Credit Score – Avoid These Mistakes …
- Why Do Creditors Place Charging Orders? | Bankruptcy Information UK
- Spansion Moves Closer to Successful Conclusion to Chapter 11 …
- Washington Mutual, Inc. Files Plan of Reorganization and …
- Are You Looking for Stock Market Holidays 2010? : World Correspondents
- Karo Mumkin » Human Voice Reorganization System
- Taylor: Soccer teams are not immune to bankruptcy | Stanford Daily
- Stock Market Holidays 2010 – oSeat
- Washington Bankruptcy – Baxter & Baxter, LLP | Consumer Protection …
- Creditors Step Up Paycheck Garnishments as Debtors Struggle to Pay …
- Bankruptcy Property Exemptions | FourPx Articles
- You know, creditors are some « flipindian.com
- Reorganization Plan Delayed Again | Hartford Courant Alumni …
- Tribune senior creditors point finger at Centerbridge …
- Mall owner files plan for bankruptcy exit – Online magazine – CELLbb
Mail this post
It’s called risk. If the company does well, the creditors get only their interest and your stock can double. If it does poorly, your stock get wiped out. This is why we diversify, a bunch of good ones make up for one that goes bust.
Actually, you should never lose everything because you should be watching your investments and getting rid of it when it starts to go down. The brokers on Wall Street preach "buy and hope" oops. I mean "buy and hold" because it makes less work for them.
you can use it instead of toilet paper
well the stock will become a penny stock meaning that it will only be worth pennies, your stock is probably low enough because it is facing bankruptcy and other investors in that stock are selling it, so it is up to you if you want to sell it or not.
if they go bankrupt, your stock is worthless. if they are acquired by another company, you will be given shares in the new company
Yes to both.
Out of interest, why do you ask so many questions and, yet, you never choose a "best answer"? That really sucks.
- Pepper.