What happens to money I invested in the stockmarket if that company stops trading?
September 15th, 2008 | by Adam |
taylor asked:
I invested in one publicly owned company. It traded for about 5 years on the stockmarket. It stopped trading and now I am wondering what happened to my initial investment. I believe the business is no longer in existence.
I invested in one publicly owned company. It traded for about 5 years on the stockmarket. It stopped trading and now I am wondering what happened to my initial investment. I believe the business is no longer in existence.
3 Responses to “What happens to money I invested in the stockmarket if that company stops trading?”
By nickfromct on Sep 16, 2008 | Reply
What’s the reason the company is no longer trading? Did it file for bankruptcy or did someone buy it or was it delisted from the exchange?
If someone bought it, you should have recieved something in return for your shares. If it want bankrupt, you’ll probably get nothing. If it was delisted, the company is probably still around, but isn’t doing very well.
You need to figure out what happened to it.
By gifted2006 on Sep 19, 2008 | Reply
unfortunately, your shares are worthless. You can write off the cost of the shares on your tax return on a dollar-for-dollar basis against any gains you have. If you have a tax adviser, talk to him/her about it.
Shareholders are always the last group to get any $$ out of a company that goes bankrupt.
By Sang Suci on Sep 19, 2008 | Reply
If the company stops trading because it goes bankrupt, you can expect to lose your investment. If, however, it stops trading because it merges with other company, it will just a change of name and your investment is still worth something. So which one is your case? The company stops trading because it went banrkrupt? Or does it stop trading under the old name?