I bought stock in a company- they emerged from bankruptcy and took the company private. What happens to my stock?
I bought stock in a company- they emerged from bankruptcy and took the company private. What happens to my stock?
2 Jun
11:55 am on June 2nd, 2010
The stock may have been worthless when they filed bankruptcy after paying off all the debts. Then the stock would have been canceled. You lost everything and they started over as a private company with new capital. Or they paid you for your shares when they went private. It sounds like the former
12:49 pm on June 2nd, 2010
When they filed for bankruptcy you lost your “ownership” interest in the company, so your stock does not exist any more. If you still have the paperwork, your broker may buy all your shares from you for a penny, so you can record your loss on your taxes…
(This is just a wild guess, but hopefully that convinced you that “penny stocks”, ie stocks that trade at less than $5 a share, are not worth buying…)
1:16 pm on June 2nd, 2010
worthless.