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    lwmscatadj's Avatar
    lwmscatadj Posts: 2, Reputation: 1
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    #1

    Mar 7, 2009, 05:31 PM
    Common Stock during bankruptcy
    During the different stages of bankruptcy, when does common stock become worthless.
    walt17's Avatar
    walt17 Posts: 335, Reputation: 28
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    #2

    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.
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