What hapens to a company’s stock when it declares chapter 11?

1 Answers

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  +1 Votes 1  0

  Pinyo on Jun 02, 2010

  I believe you’re referring to chapter 11. When this happens, the shares usually become worthless. If the stock has not been delisted yet, you could sell them just like any other shares and take a loss. Otherwise, you can work with your broker to see if you could declare these shares worthless. If neither options are viable, you are basically stuck with these shares until the company gets back on its feet and decide to do something with these original shares.

  Here are some additional reads:

  • What happens to a company’s stocks and bonds when it declares chapter 11 bankruptcy protection?
  • Worthless Stock