So one of my stocks is probably going to fall to 0 soon, unless it gets bought up or something. Idk. The stock is Seadrill LTD $SDRL.
Since I've never had this happen before, I'd thought I'd use this an educational opportunity.
In case any of you are wondering, I didn't choose to buy it. A manager bought it for me a few years ago for ~$200. By the time I pulled my account and moved it to a discount brokerage firm, it was worth about $9. Now it's worth <$5.00 after the share price dropped 55% today to $0.74.
I'm guessing traders will have some fun with this thing for a little while before it officially goes belly up. But as a non-trader...do I just sell it for the few dollars left I have in it, or hold onto it? Lol
Part of me wants to hold it to 0, just to see what happens since this is all new to me. But does anything actually interesting happen? Will my brokerage automatically sell it for $0.00, or do I have to initiate the transaction? Are there rules for how long you have to sell a defunct stock, or can you choose to not sell it and realize the tax loss the next year or something?
Also, what happens if you want to sell it, but its value drops below your brokerage's trading fee? Will it just not let you sell, only charge you what it's worth, debit your cash settlement account, etc. ? Or does it differ from brokerage to brokerage?
If I'm entitled to anything in bankruptcy (highly unlikely), how long does that usually take?
Teach me all wise ones.
Submitted April 04, 2017 at 08:08PM by thealpha100 http://ift.tt/2oG3gCe
