What happens is the put writer gets hosed.
If a company goes into Chapter 7 bankruptcy, all its stock becomes worthless. Unfortunately for the people who wrote put options on the company's stock, those do NOT become worthless. If the put buyer decides to exercise the option - and he will - the writer has to buy all those shares of worthless stock at the strike price.
you can claim a CAPITAL GAIN LOSS ON YOUR TAX RETURN FOR THE YEAR IF THE COMPANY GOES BANKRUPT that's it.
When a company goes bankrupt, shareholders may lose the value of their investment as the company's assets are used to pay off debts to creditors. Shareholders are typically last in line to receive any remaining funds after creditors and bondholders are paid.
it means that the company has limited liability. If the company goes bankrupt they loose only what they invest in the business.
The company still has to pay it off, it might even just rest on the owner's, or the person who took it out, hands.
When a company goes private, its stock options typically lose their value as they are no longer traded on a public stock exchange. This means employees holding stock options may lose the opportunity to exercise them or sell them for a profit.
Nothing.
If the Bankrupt company is just the retailer then the warranty is still covered by the manufacturer. If the manufacturer goes bankrupt then the retailer covers the warranty. The seller is responsible for a warranty. Clearly if the seller is the manufacturer and they go bankrupt then it's most unlikely that the warranty will remain in force.
you can claim a CAPITAL GAIN LOSS ON YOUR TAX RETURN FOR THE YEAR IF THE COMPANY GOES BANKRUPT that's it.
When a company goes bankrupt, shareholders may lose the value of their investment as the company's assets are used to pay off debts to creditors. Shareholders are typically last in line to receive any remaining funds after creditors and bondholders are paid.
it means that the company has limited liability. If the company goes bankrupt they loose only what they invest in the business.
The things it is invested in are separate from the company administering it...the $ are in those assets (stocks/funds) and will simply be transferred to whoever looks after them in the future.
It can not pay its employees or pay for its services.
The company still has to pay it off, it might even just rest on the owner's, or the person who took it out, hands.
Well, NASCAR maybe purchased by another company or person. It is too big to just give up on. Someone will buy it.
Yes.
When a company goes private, its stock options typically lose their value as they are no longer traded on a public stock exchange. This means employees holding stock options may lose the opportunity to exercise them or sell them for a profit.
If a company never goes public, stock options may become worthless as there is no market for them to be traded or cashed in. This means employees or investors with stock options may not be able to realize any value from them.