Are There ways to know which stocks the price can drop below Zero ?

Discussion in 'Trading' started by TradeTune, Oct 19, 2020.

  1. never2old

    never2old

    as in 'listed as a negative price', don't know, don't think so

    your investment can go to zero

    couple simple examples using a base of buying a $10 stock

    the price drops to zero

    it forever reverse splits leaving you with a zero ACB

    https://www.splithistory.com/uvxy/

    the stock gets delisted
     
    #41     Oct 25, 2020
  2. Overnight

    Overnight

    Did this idea only come up recently, because of what happened to CL? There is zero logical sense in everything about the idea of stocks going below zero.

    Here's how it works, from my older-school mind. Take away computers, and the internet, and all electronic BS.

    When you buy stock in a company, you get paper certificates saying you own, say, 100 shares. You spend $10 per share on them. So you have 100 paper certificates worth $1,000.

    The company goes bankrupt, and shuts down. The company is now worth zero. Your shares are worth zero.

    So here is the key, children...Please listen very very carefully...*LISTEN*

    Do I now pay somebody 20, 30, 50, 100, 5000 cents per share to have them take the stock certificates from me, or do I simply toss them into the shredder/fireplace? WTF?

    HELLO?!?!
     
    #42     Oct 25, 2020
  3. ajacobson

    ajacobson

    Not a bankruptcy - yet and not very common. Low priced stock and they sell the primary business unit to pay down the debt. Most of the debt is convertible and you want to exit with a same-day trade to mark in the calendar year. So the convert holders get handed cash and multi-day float. It is rare, but someone wants the remaining public corporate shell.
     
    #43     Oct 25, 2020
  4. SunTrader

    SunTrader

    Low priced stock <> zero or especially Less Than Zero.

     
    #44     Oct 26, 2020
  5. Sig

    Sig

    I can't believe the inanity of this thread has gone on for 5 pages and 44 posts!
     
    #45     Oct 26, 2020
    BKR88 likes this.
  6. Overnight

    Overnight

    You just made it 45.

    Whoops, I just made it 46! *shakes fist at the universe*
     
    #46     Oct 26, 2020
    Sig likes this.
  7. If anyone would have known which stocks price would drop down to zero, they would be the richest.
     
    #47     Apr 22, 2021