At our last meeting several of our members wanted to sell
WCOM because of the loss we occurred, and the fact that WCOM
is going bankrupt or has already gone bankrupt. It was
brought to our attention that the stock is still trading.
We could not understand how a bankrupt company could still
trade on the market. Another point we discussed--what kind
of a loss would we take if the company is not worth
anything. Any information you can give us to start a
discussion at our next meeting would be appreciated.
Thanks.

Rose Rooney

Bankrupt companies often still trade. They may be delisted
from the major exchanges though. For examply Enron still
trades as a OTC stock.

Bankruptcies are all different in some cases the common
stock may not be completely worthless. However, in WCOM's
case I believe the common stock is clearly worthless. If I
were you I would definately recognize your loss before year
end. Even though the common stock will be worthless
someday, as you note, it still trades so your loss would be
measured the same as a normal sale, proceeds (however small)
less basis.



ROSE K. ROONEY wrote:
> At our last meeting several of our members wanted to sell
> WCOM because of the loss we occurred, and the fact that WCOM
> is going bankrupt or has already gone bankrupt. It was
> brought to our attention that the stock is still trading.
> We could not understand how a bankrupt company could still
> trade on the market. Another point we discussed--what kind
> of a loss would we take if the company is not worth
> anything. Any information you can give us to start a
> discussion at our next meeting would be appreciated.
> Thanks.
>
> Rose Rooney