Thanks for the responses.
On Thursday 06/11/2014 at 12:23 pm, Mike Jones via bivio.com wrote:
Would selling these nearly worthless shares preclude claiming any benefit that may result from the lawsuit? Or would having owned the shares secure your rights?
Mike Jones
Wall$treet Wannabees
From: Laurie Frederiksen <laurie@bivio.biz>
To: The Club Cafe <club_cafe@bivio.com>
Sent: Thursday, November 6, 2014 7:45 AM
Subject: Re: [club_cafe] stock filing bankrupsy
Hi, When a company files for bankruptcy, its shares are typically delisted from the major exchanges as it moves through the bankruptcy reorganization process. They are not worthless, but they may not be worth much.
Many companies eventually cancel their outstanding stock when the bankruptcy is finalized. That is the point when the shares become worthless and you can write them off, but this can take several years. Until then, you'd own a stock with little value that would make your club record keeping a bit harder because you'd have to update its price manually. If you want to keep things simple, you'll probably want to have your broker sell the shares you have ASAP so you can remove them from your records.
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On Thu, Nov 6, 2014 at 7:27 AM,
<mmoriarty@crocker.com> wrote:
We received a notice that a stock we invested a small sum in has filed for bankrupsy. There is also a lawsuit filed against them for fraudulent representation of company finances. What steps should our club take?