Your broker is obligated to make a trade as long as the stock is listed on
the BB or pink sheets. Lets say you own a 100 shares of a stock trading at
.01. Your trade would net $1.00 less commissions. My broker has a policy to
not charge a commission in excess of the proceeds, so they would net the
dollar and you could then reflect the trade as a net proceed of zero. You
can at least then claim the loss on your taxes.

There is a way to take a loss in the event you do not make the trade and the
equity becomes worthless (no market available). You need to contact a tax
advisor in this situation as it entails additional tax schedules.

JM



-----Original Message-----
From: Albert St. Onge [mailto:cwo3usn@bivio.com]
Sent: Wednesday, February 19, 2003 9:05 AM
To: club_cafe@bivio.com
Subject: club_cafe: Re: How to report bankruptcy of a stock


Our club also has one of these thorny issues to deal with.
The stock is (was) listed as NSPQE.OB (Inspire Insurance
Solutions, Inc) We know it is of no value but do not know
how to get it off our books. Any help would be appreciated.
Al


IraS1@aol.com wrote:
> You don't. You need to sell the stock to claim the loss. Declaring
bankruptcy does not, in and of itself, make a stock worthless. Many bankrupt
company stocks continue to trade. It takes a total liquidation of the
company with no distribution to the common stock shareholders or a court
determination that the stock is worthless or a decision by the company's
board to cancel the outstanding common stock to make the stock worthless.
>
>
>
> Perhaps, if you told us which company it was, you could get a definitive
answer.
>
>
>
> Ira Smilovitz
>
>
>
> In a message dated 02/19/03 7:15:51 AM Eastern Standard Time,
mathwickc@bivio.com writes:
>
>
>
> One of the stocks our club owned went bankrupt.  We had a
>
> loss of over $800 on the stock.  How do I enter this in
>
> Bivio so I can run the tax forms showing this loss?