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

[Lizakers]

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?

 

[dopestop]

you lose stock

just look at circuit city

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

 

[t0xicman]

I would buy more stock and try to take over the company, IMO the right thing to do

 

[Lizakers]

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?

 

[fade on you]

You lose

 

[dlo13]

Your stock becomes worthless.

Part of reorganization would likely involve a new IPO.

 

[soltheman]

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.

 

[heyson]

worthless

 

[hybridsoldier23]

 

[isiahil]

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.

 

[dacityslanga]

Zip..Zilch..Nothing

 

[dopestop]

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

 

[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.

 

[eddie]

depends on the company..............READ DOCUMENTS

 

[arrjae]

RIP

 

[wj4]

Originally Posted by DaCitySlanga

Zip..Zilch..Nothing

Word to WaMu. This is why you swallow your pride and let go after a 15% decrease.

 

[lazyj10]

Generally, you're an unsecured creditor (assuming common stock) and therefore, would be last in line during liquidation of bankruptcy proceedings.

 

[21 world b free 21]

and if its chapter 11 (reorginzation) not chapter 7 (liquidation)?

 

[tmukg21]

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

 

[stickyricky34]

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.