Hello all,

Looking to find out what happens if you bought stock in a company that has since gone into liquidation.
Its share price was frozen and liquidators were brought in.

Q1. Am unsure whether I have any recourse, or investment is a write-off. Can I transfer shares from original
Company to the new company.

Q2. How can I find out whether company A will perhaps ever trade again, or whether it is now no longer extant?


Regards and thanks

Q1: It all depends on the terms of the purchase of Company A by Company B. I suggest you go to the web site of either company, go to their "for investors" web page and see if they have any information on this. Sometimes shareholders of the old company are entitled to shares in the new, but if company A was bankrupt it may be that shareholders are left out in the cold, in which case your investment is a total write off.

Q2: Again, check the companies' web sites. Also - if the company has stopped trading it will no longer appear on sites like Yahoo Finance. If all else fails, call your stock broker and ask, or call the phone number of the transfer agent for the Company A stock.

Ok I have a question on stocks.
For a company buying back its stocks so it can go private for a merger, can the company do a forced buy back at below stock price?

Yes, the buy back price will be whatever was approved by the stock holders in authorizing the deal. Quite often when a stock deal like this is announced the market will bid the price of the stock up, as investors see little risk in owning the stock. You have the option of holding onto the stock and turning it in when the buy-back occurs for the pre-set price, or you can sell your stock ahead before that, which may be a good idea if you can truly get a higher price.

Sir,

I am holding 2000 shares of delta corp since Rs.77. I am prepared to hold it long as it is commencing 4 new projects. Please highlight on what levels it can go down and can I get my price back after a year or two? Can I average it at lower levels? It it a good long term bet?