Floral Pattern
Floral Pattern

This is What Happen If a Stock Goes to Zero?

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

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

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.

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

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

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

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

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

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

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