This is What Happen If a Stock Goes to Zero?

Floral Pattern Floral Pattern

The stock price drops to $0 per share, meaning the company's market capitalization is zero. This usually happens when a company goes bankrupt.

[{"selector":"#anim-6d4fe5d3-2134-4163-b20f-1c9d189232cd","keyframes":{"transform":["translate3d(87.63158%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c5812417-3c78-44c5-8882-cb9eb9af8a7e","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d7ecb03e-7102-4fcc-8ef3-7ae511dd79de","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-f4990267-b887-41f2-ae71-3273fe97aafe","keyframes":{"transform":["translate3d(108.14815%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-120f49d0-a0f9-4e36-ba5a-b42c946a7b83","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8c33e17d-dd12-48a4-bdb6-ecbe1c292189","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-80b83cea-c11d-43b5-b9e7-f4d4e090d1cc [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Shareholders lose the entire value of their investment in that stock. Their shares become worthless.

[{"selector":"#anim-c2563cce-9425-4704-8e38-5c43cbd64ad8","keyframes":{"transform":["translate3d(87.63158%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-989997ea-74c2-412f-9179-d7d61acb56b3","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9a789f51-b218-4eb6-8db0-12feb9fc6eb8","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-3473c103-a501-4c4b-a647-2f64b98ecda8","keyframes":{"transform":["translate3d(102.96297%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-fe6cafab-56d2-49a5-857c-be253072e119","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-488e530a-0b74-4a91-a36c-4a1074237875","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-99b90c03-a9c3-458c-be20-350702e3361c [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

The company's stock is delisted from the major stock exchanges like NYSE and NASDAQ. It may move to an over-the-counter (OTC) market.

[{"selector":"#anim-49bfc603-c7df-4b21-bd46-a9bffca772e4","keyframes":{"transform":["translate3d(87.63158%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f9c53163-5a9f-4560-8a74-c26601e6ae9b","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8a2e64d0-6323-4944-a792-190ff63d2738","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-d69e5a24-3eea-453a-8db7-84a90a1229ef","keyframes":{"transform":["translate3d(107.40741%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-615ace11-5df5-4941-a93f-21fa3f821e95","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-38809cce-7d99-4e14-8f2e-90d96205dff3","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-5429481e-8f79-4308-aef1-0ab4552351d0 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-7.105427357601002e-15%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Trading of the stock on exchanges is halted. Only OTC trading may continue, with very limited liquidity.

[{"selector":"#anim-2cad67cd-42cc-48ba-993e-5b839f96df39","keyframes":{"transform":["translate3d(87.63158%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c7cbb176-5e10-4e56-93e4-e1e3a151d6b0","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b0c088bc-d6bb-4560-a913-69107ba96414","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-85b7af34-b34d-4795-88b6-97a21ab1d147","keyframes":{"transform":["translate3d(102.96297%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d984b216-5e3d-456d-b1b2-67bc4ce4dbf4","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0a833898-ff8c-4900-b9d2-c7f358fefe5d","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-a547b6a0-9538-4956-8ce9-7d2883c29a43 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-4.985818135455837%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

The company files for Chapter 7 or Chapter 11 bankruptcy to restructure debt and assets. Operations may wind down.

[{"selector":"#anim-d2ed28e8-9d40-4d09-bffb-fbfe5aeeb506","keyframes":{"transform":["translate3d(87.63158%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-94a32cf1-08de-4fc8-ba75-d3d8e18c14b2","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-56e61777-ba9f-4442-95e6-562e4c45fcb8","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-b06a6960-b7e9-406c-b815-05ceb9596ffc","keyframes":{"transform":["translate3d(102.96297%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f374e656-3c40-4ca6-8e7d-ec102f825634","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c92e581a-b812-47f7-bf3c-a669614c8a76","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-3ef2a2b2-6991-4b67-aa84-55378afadf0c [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-9.000000032766991%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Assets are liquidated to pay off debt holders, creditors, bondholders, etc. Shareholders get nothing until all other stakeholders are paid.

[{"selector":"#anim-a717da79-d53c-4b1b-858f-c0e6bb16f2ff","keyframes":{"transform":["translate3d(87.63158%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-cd50568d-2305-48bb-8b7d-25744ccc6692","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b21b0d2f-365c-4ffd-82c2-f0b892af8a78","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-35877d86-aa75-48ae-ab15-0ce785c16ecc","keyframes":{"transform":["translate3d(108.14815%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d2a02a9f-0470-4d6a-86b3-25abb5722346","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-68a6eef4-a3d8-4d52-8bc0-964bf2d82538","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-a1baff41-05eb-4dc1-9e67-a6f23d4353be [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-7.105427357601002e-15%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Shareholders' voting rights are suspended with bankruptcy. Control shifts to creditors and bondholders.

[{"selector":"#anim-c2f518c2-ebbd-4d55-8f75-dd56fe2e223b","keyframes":{"transform":["translate3d(87.63158%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c394f03d-e43c-498d-939b-2d5e0d19f768","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-cbd54944-f8bb-497a-8e45-ffa1cc0a1330","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-58469d74-b4d1-4035-92c0-9b1ceeaf7e1e","keyframes":{"transform":["translate3d(108.14815%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ffc1c4f1-d6d3-48b8-9a5a-c07803be5ebd","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-47e4cba0-6ae8-468a-8556-062233555581","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-285d6011-161f-4f0e-9df9-1c3b816bcc9e [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

The company's stock ticker symbol may receive an "Q" added to indicate bankruptcy filing. For example, XYZ changes to XYZQ.

[{"selector":"#anim-027534d0-b07b-497c-965e-2bc3143c97b2","keyframes":{"transform":["translate3d(87.63158%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-dfbd9d59-ca99-46ba-b211-f74e1f36f84b","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2c642803-48ea-4379-a1c0-79c5a33dea05","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-91cc31a8-9244-42f2-9e9e-34658e5b5671","keyframes":{"transform":["translate3d(107.40741%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0031c128-502f-475a-a2ed-5b85fe692edd","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3c5c22aa-8ec3-4ea5-86dd-6b01bf550958","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-01e742ab-f01a-4c62-a826-1f1a8aa003ff [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Retail investors lose money. Institutional investors and funds holding the stock also face losses.

[{"selector":"#anim-c106d3d7-f682-49d3-978a-8746174da619","keyframes":{"transform":["translate3d(87.63158%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5470c093-584f-4a8b-bca0-389500c56893","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-97f63962-b4cc-4a6f-ba19-32a3d5ecc7af","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-99c9fa18-cf1e-455b-9f73-5a5a64f9f8be","keyframes":{"transform":["translate3d(102.96297%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-55dffc70-4f3c-4e63-b466-cc8b3fd47fa2","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5425092e-ee7d-4bec-9233-fa3691aa74b9","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-9156bb84-c1b0-4296-ab83-994f08a3a458 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Employees lose jobs. The company workforce is reduced and remaining operations may cease.

[{"selector":"#anim-b15c3eb5-850b-4685-a00a-12bea60e90d1","keyframes":{"transform":["translate3d(87.63158%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-fcaa3dd6-68ef-420f-b27a-e4158a3868a7","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4828e355-f6ad-41cd-8832-d8c09415bd58","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-10a750c9-5147-4a22-8869-3f11f7297e83","keyframes":{"transform":["translate3d(119.18368%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b0c03e1d-7bf6-4df8-8a54-b7cebc242332","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9a90e3fa-d0b3-42af-834f-35169a82db75","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-d09887b5-5bec-4e4e-a5d4-a312062191bb [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]