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lwmscatadj
Mar 7, 2009, 05:31 PM
During the different stages of bankruptcy, when does common stock become worthless.

walt17
Mar 8, 2009, 03:21 AM
When all the money is gone. Debts are paid first. Then bondholders, preferred stock second, and common stock last.

But bankruptcy does not mean the common stock will always become worthless. If the company reorganizes and comes out of bankruptcy, the stock would still be good.