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I'm presuming by administartion you mean in Bankrutpcy of some type, probably C-11 or C-7 in the US. Although the answer is basically the same everyplace. Stock in a company is equity - meaning ownership. Compared to creditors who simply are owed by the company. Stockholders are NOT creditors...the company "owes" them nothing...as owners they had the right to share in profits of the company - botht the earnings and the possible appreciation in their ownership. Debt does not. It only has the right to get paid what it is owed. Hence, a company in bankruptcy. recievorship, administration - whatever one wants to call it...is there because it's liabilities (it's debts) are more than it's assets. (Or maybe it has plenty of assets, but if they were used to pay debts, it could no longer operate). Hence, when you own that company if you will - you owe a net liability - nothing of value to you...the stock is normally trading, or valued as such..for pennies. The BK or process may allow the company to escape paying some debts and such, in order to continue operating...but normally, in exchange for not getting paid what they are owed, those creditors (frequently banks/lenders rather than the trade vendors), agree to take the stock of the company and hope to revivie it, sell it and recover their loss. So the shares of a BK company are almost always worthless, are frequently eliminated in exchange for discharge of debt (sold for the debt), with a new reorganized company taking it's place, or if that can't be achieved....the assets of the Company are sold and IF (thats a big if), there is more money realized on the sale than is owed, the excess would be distributed to the stockholders as a liquidating distribution.
What else can I help you with?
What happens to my shares if a company goes private?
If a company goes private, your shares may be bought back by the company or by a private investor. This means you may no longer be able to trade your shares on the stock market.
What happens to your shares when a company goes private?
When a company goes private, your shares are typically bought back by the company or by a private investor. This means you no longer own a stake in the company and cannot trade your shares on the public stock market.
What happens to shareholders when a company goes private?
When a company goes private, shareholders no longer have the ability to trade their shares on a public stock exchange. They typically receive a cash payment for their shares or are offered the opportunity to exchange their shares for shares in the private company.
What happens when company stock shares decrease?
i dont know hehehehe sorry...
What happens to unvested shares in an acquisition?
Unvested shares in an acquisition typically become subject to the terms of the acquisition agreement. This means that the acquiring company may choose to either convert the unvested shares into shares of the acquiring company or provide some form of compensation to the original shareholders.
What happens if a stock goes private?
When a stock goes private, it means that the company's shares are no longer traded on a public stock exchange. This typically occurs when a company's ownership is consolidated into the hands of a small group of investors or the company itself. Shareholders of the company may receive a cash payment for their shares or be offered shares in the private company.
What happens when a company buys back stock?
When a company buys back stock, it purchases its own shares from the open market, reducing the number of shares outstanding. This can increase the value of the remaining shares and improve earnings per share for existing shareholders.
What happens to shorts when a company goes private?
When a company goes private, the shares of the company are no longer traded on the public stock market. This means that shareholders who own stock in the company can no longer buy or sell their shares freely. As a result, the value of the shares may decrease, and shareholders may experience a loss in the value of their investment.
Which ofthe following happens when a company goes public?
It begins selling shares of stock in a public stock
Do market shares burden the company?
Market Shares depend upon the company prices. If market down then company shares will be down. Then its true that market shares is always burden for the company.
What happens to the stock of my company when it is bought out?
You will either receive a cash payout for your stock or receive shares in the new company in some ratio for your existing stock.
Gives you the latest definition of privatization?
Privatisation happens when somone bought outa company shares listed in the stock exchange and delisted the company from that exchange.
