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Most times in bankruptcy, the stock continues to trade on the open market, assuming it is already publicly traded. It is only when the company closes shop that the shareholders MAY be out of luck. Common stock is lowest on the totem pole of paybacks. In other words, when a publicly traded company goes out of business, it's assets are sold and distributed to all creditors (including bond-holders) before the stockholders (owners of the company) get any money back. Most likely, however, there's nothing left to be distributed. This is why it's important to evaluate what you're buying very carefully before the purchase is made. Also, know when you are going to sell and then sell it, ie, stock price gets up to (or down to) a certain price. Most people don't lose money in the market because they don't know WHAT to BUY...rather because they don't know WHEN to SELL.

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โˆ™ 2011-05-13 08:12:35
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Q: What happens to stockholders when a company files for bankruptcy if they are then merged with an active company?
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Related questions

What is active bankruptcy?

Active bankruptcy means an individual or business has filed paperwork for bankruptcy and the case is ongoing. This takes quite some time in many cases and the case can be active for awhile.

When was the Nationwide insurance company declared bankrupt?

There is no easily obtainable record of the Nationwide insurance company declaring bankruptcy. Currently, they are an active company, with enough profit to donate to charitable causes.

Can you refile bankruptcy if its still active?


Can you rent an apartment from a company with an active chapter 13 bankruptcy?

You could rent it, but chances are that the management will be poor until the bankrupcy is discharged.

What is considered active bankruptcy?

A bankruptcy is active from the moment of filing until the case is closed. For chapter 7s, that is usually about 6 months. A chapter 13 may be active for 60 months.

Can active duty army go through bankruptcy?


Are you considered to be in active bankruptcy until it is discharged?

Yes....kind of the perfect definition

Does wage garnishment stop the day you file Bankruptcy?

It should, but only for as long as the bankruptcy is active, and only so long as the debt is listed after the bankruptcy is discharged. More accurately, the garnishment must stop when the plantiff in the judgment has received notice that there is a bankruptcy.

Is Memphis Publishing Company Still Active?

yes the Memphis Publishing Company is still active

Can my wages be garnished by the student loans while i am in a chapter 13 bankruptcy?

If your bankruptcy is currently active, collection efforts on the student loan will cease until the bankruptcy inactive at which point collection activities will start again.

Who is active worker?

An active worker is an active employee of a company. The person works a certain amount of hours per week for a company and is on the company's payroll.

How long is a bankruptcy stay?

As long as your case is active. However, creditors can ask for the stay to be lifted for them.

If you file bankruptcy do you lose your contractor license?

No, just as long as your contractors bond is still good and active

Can you tell me about Camel Active company?

Camel Active is an accessories company that is located in the country of Kuala Lumpur. They are known for selling textiles.

What happens at the active site of an enzyme?

the substrate bonds to the enzyme at the active site

How do I find out if I still have an active account with a company?

Contact that company and ask them.

During an active chapter 13 bankruptcy if the spouse counter sues for divorce do they also need to obtain a relief from stay from the bankruptcy court for the divorce?

If they are seeking relief with respect to property, then yes.

Is the policy I have active?

Call and ask the company.

What are active zones and what happens their in volcanoes?

Its cool

What happens when volcanoes are active?

welll..... tHEY ERRUPT!

How does an active towing and recovery company become a repossession agent?

The active towing company will need REPO insurance and REPO agents. And some REPO clients.

Is a carrier protein an active transport or a passive transport?

Active Passive just happens if something needs to be carried then its being acted on... active... active needs energy to

What service or industry did 'smartparts' service?

The Smart Parts company specialized in paintball services and products. The company hasn't been active in years, but it owns an active company called Gog Paintball.

What happens when you touch a lionfish?

This profile is no longer active.

What happens to the active site of an enzyme when it is denatured?