If I own stock, then company goes bankrupt, what happens?

12,943
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Joined Apr 24, 2006
I own shares in a company and they are going to likely file for bankruptcy. But the company will re-organize and rebuild for the future, in other words, thecompany will still exist.

Will my shares be affected in any way?
 
2,095
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Joined Sep 27, 2008
you lose stock

just look at circuit city

days before the final day, stocks were at .10 cents
 

t0xicman

Banned
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Joined Jan 28, 2008
I would buy more stock and try to take over the company, IMO the right thing to do
 
12,943
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Joined Apr 24, 2006
Originally Posted by dopestop

you lose stock just look at circuit city days before the final day, stocks were at .10 cents
so i will still own the stock, but the price will drop, right?

in other words, when the price goes back up in a few years, I will still own them right?
 
11,234
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Joined May 19, 2004
Your stock becomes worthless.

Part of reorganization would likely involve a new IPO.
 

soltheman

Banned
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Joined Jun 1, 2008
It depends on what you mean by "re-organize."

Companies can, quite legally, purge their stocks so that they can resell them again.

Chances are if theres a name-change, you won't still own the stock. However, the opposite is equally just as likely. Read whatever documentation youreceived, if any. If you can't, talk to your broker ASAP.
 
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Joined Oct 23, 2005
Originally Posted by t0xicman

I would buy more stock and try to take over the company, IMO the right thing to do
Hopefully he is being sarcastic. If not
horrible idea.What company is it? Most likely your screwed. Get out ASAP.
 
2,095
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Joined Sep 27, 2008
Originally Posted by Lizaker4Lizife

Originally Posted by dopestop

you lose stock just look at circuit city days before the final day, stocks were at .10 cents
so i will still own the stock, but the price will drop, right?

in other words, when the price goes back up in a few years, I will still own them right?

no bro circuit city is dead if its bankrupt ITS GONE... sell it nao... unless a miracle happens and it gets bailout but by then its going to take about 2-3years to get the stock to the top depending on the company your screwed
 
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Joined Dec 31, 2006
lol...

Happened to me about 4 times last year. Besides the jargon, I was able to keep my stock and converted to the company that took over.
 

wj4

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Joined Jul 6, 2002
Originally Posted by DaCitySlanga

Zip..Zilch..Nothing
Word to WaMu. This is why you swallow your pride and let go after a 15% decrease.
 
12,025
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Joined Feb 12, 2003
Generally, you're an unsecured creditor (assuming common stock) and therefore, would be last in line during liquidation of bankruptcy proceedings.
 

tmukg21

Banned
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Joined Apr 23, 2008
Originally Posted by Toy Collector123

lol...

Happened to me about 4 times last year. Besides the jargon, I was able to keep my stock and converted to the company that took over.
sounds like the answer the OP was looking for, not whether to sell them or not
 
666
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Joined Nov 17, 2007
You will most likely end up with $0. I don't see why people want to put money in these "lottery ticket" securities. The most they're good foris a day trade.
 
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