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    #1

    Worthless stocks

    How do you determine whether a stock is deemed worthless or not so that the investor can claim a total loss? Is there any website out there where you can check which stocks become worthless in which year?

    Take Commerce One for example. The company filed bankruptcy in 2004. Does that mean if you held the stocks of this company, you can claim a total loss in 2004?
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    #2
    when worthless

    Many companies come out of bankruptcy so it is not an indicator of worthlessness. I would check out the stock on yahoo.com or some other website that has stock listings.
    This may not work either if trading is suspended but the company still exists. Then maybe try google.

    Comment

      #3
      Sell

      I have had people that sold stock that was considered worthless but still in existence. Sold for 20 cents a share or some ridiculous amount. Broker handled transaction.

      Then it can be shown on Schedule D

      Linda F

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        #4
        Worthless means

        there is no potential to find a buyer. Brokers will give you a letter if the stock can not be sold on their markets. Bankruptcy means nothing-they usually trade on the pinks while in it, if it was a public company.

        Comment

          #5
          And to make it even more confusing

          When a company is about to go under, it may reorganize and go through all sorts of convoluted maneuvers and end up change the company name

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            #6
            What happened to Commerce one

            Originally posted by Questionguy101 View Post
            How do you determine whether a stock is deemed worthless or not so that the investor can claim a total loss? Is there any website out there where you can check which stocks become worthless in which year?

            Take Commerce One for example. The company filed bankruptcy in 2004. Does that mean if you held the stocks of this company, you can claim a total loss in 2004?
            February 2006 it was acquired by Perfect Commerce, aparrently a private company
            in Kansas City. Your client's broker will have more details as to results of the
            chapter 11 bankruptcy. Notice, chapter 11, meaning reogranization. Chances are
            that the common stock did end up being worthless, but not until 2006, if indeed that
            is the year the chapter 11 proceedings ended.
            ChEAr$,
            Harlan Lunsford, EA n LA

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