What Happens When a Stock Goes to Zero?
Preview the latest points of zero stock
Investment Loss:
Shareholders face total loss of their investment as the stock becomes worthless.
Trading Halts:
Exchanges may suspend trading to prevent further losses and maintain market order.
Bankruptcy Potential:
Often, a zero-value stock indicates the company is nearing or has declared bankruptcy.
Creditor Priority:
In bankruptcy, creditors and bondholders are paid before equity shareholders.
Delisting Risk:
Stocks that fall to zero are at high risk of being delisted from exchanges.
Tax Implications:
Investors might be able to claim a capital loss on their taxes, offering some relief.
Reorganization:
Post-bankruptcy, companies may restructure and possibly issue new stock, but old shares typically become void.
Market Impact:
A stock collapse can influence investor confidence and market perception of related sectors.
Acquisition or Dissolution:
Other entities might acquire the company's assets, or it may dissolve completely.
Large Radish
swipe to see more finance stories
learn more