What happens to the stock owners if the company files for bankruptcy?
Jan Meriss Alfonso Assistant at Ascent Law LLC What Happens to the Stock Owners If the Company Files For Bankruptcy? A bankrupt company's stock is usually worthless. However, there are a few options for stock owners in this situation. They may be able to sell their shares over the counter, but this can be risky as they may end up with a loss. Another option is to wait out the bankruptcy process. If you have faith in the company's management and its business model, you may be able to sell your shares for a loss. Compensation for stock owners in a bankrupt company Buying common stock in a Chapter 11 bankruptcy company is an extremely risky venture and can lead to substantial financial loss. For more information on saving money and investing, subscribe to the Investor Insights newsletter published by the Financial Industry Regulatory Authority (FINRA). It contains helpful tips and advice for saving and investing. It is possible to get substantial compensation after the bankruptc...