 What is a better bet? |
| I have a 401k, in it I have some small cap growth fund and some mid cap growth fund I am not sure if I should dump one for the other or not. At the moment I have much more of the mid and its been a ... |
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 Why should a change in their stock price affect a company ? |
If I understand it correctly, a company issues stock and
sells it to raise capitol. Once they have sold the stock to
the public, and been paid for it, why should any changes
to the ... |
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 What whould you invest in $500.000.00? (half of million)? |
| please do not answer paid my loan or my debt in gerenal, I'm talking about how to make this money more money...Thank ... |
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 Someone said: You bought 100shares of a $300 stock. If you paid $10 to buy and $10 to sell.? |
You need to make 6.6% before you are even...
this is what some one said...and it doesnt make sense to me..
so you are investing 30,000...even 5% of that is 1500$ which is way more that 20$ ... |
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 Investing £50.000? |
| i was thinking about borrowing a bit more and buying a property in florida and let it out for a few years to pay off the extra. anyone have any ideas of how to invest the 50k.... |
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 I have a metlife high yield savings account, why does the interest rate keep going down? |
| I opened the account 4 months ago and they were advertising a 4.5% rate and every month it has gone down and is now 4.4%. Anyone know why the rate is going down.... |
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 Saving money in a Mutual Fund? |
| I am saving money for a down payment for a house. I have $1500 so for. Would it be good to put that in a mutual fund, or would it be better in a money market account?Also i plan on putting about $500 ... |
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 If you are 30 and have $10K, how will you invest? |
| How you people invest at this stage? Will you invest your money in foreign market or NZ market? What are the tools available? I am currently only having it in term deposite, just wanna find something ... |
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John D | If I own stock in a company and the company files for bankruptsy, what happens to my stocks.? |
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 |
 
WarrenBB
|
When a company goes through bankruptcy, the whole thing goes through Bankruptcy proceedings. The original shareholders such as yourself may eventually lose your all of your equity if the decision is to scrap the company to pay off debtors.
But this is not always done. In most cases, the company leadership use bankruptcy to protect themselves from creditors and secure the funding it needs to try to turn around the ship. Sometimes, they are successful at turning around the ship.
Sometimes, the companies re-emerge from bankruptcy proceedings in better financial stake, and shareholders like yourself are rewarded for their patience. Check out United Airlines. Last time it went into bankruptcy protection was after 911.
During this time, the stocks will still be traded (albeit at a really really low value). At some point, the stock may be delisted from the major exchanges like NYSE or NASDAQ, always a horrible sign, and may trade over the counter (pink sheets). Or it can continue to trade on the major markets. The important thing is that it can still be traded.
As an investor, you'll have to make the decision on whether in your case you think the company will come back alive, or whether it's going to fold. |
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Jeff T
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The stocks become worthless.
Sorry. |
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Lauren F
 |
The stock itself is worthless, but you might be able to deduct the loss against your taxes. Up to $3,000 can be deducted from ordinary income. |
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aflack76@ymail.com
|
They're gone.. sorry. |
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wildbirdie
|
It depends. If the bankruptcy is merely a reorganization, then the shares continue to exist and be traded. The it works out, you can still make money.
If it's a liquidation, then the company is taken over by creditors and the shares are canceled and are worthless. |
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Space Invader101
 |
It becomes worthless, but if it's still listed sell straight away. |
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dk
 |
worthless and a lot of pain |
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wrightbyname
|
It depends on the level of the company's residual (realizable) assets compared to its liabilities. This in turn depends on the reason why the company went into bankruptcy: was it unable to meet current liabilities and unable to obtain additional financing due to the credit shortage, but still has substantial valuable assets like inventory, plant, property and equipment? If so, it may be able to return something to its shareholders.
As the company is liquidated, there is a level of seniority that determines who gets paid what. The liquidators get paid first, of course. Then secured debt holders, like senior bank debt. Unsecured debt and creditors come next, then preferred stock holders, and finally ordinary stock holders. There is rarely anything left for the stock holders, however. |
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