| > What does this mean? Since the company has filed for insolvency the shares can no longer be traded. > Is it guaranteed that shares of a company that files for insolvency are worth 0? When a company files for insolvency it means the companies total liabilities are greater than the total assets. And when this happens the company is handed over to a liquidator and they then decide how to handle the companies future. What the liquidator normally does is try to sell the company or parts of the company to other third parties. With the proceeds of that sale they then pay back the debt. Then if any money is left over they split that money between the shareholders. But naturally since the debts are greater than the assets the shareholders will get very little of their original investment back. Since the shareholders are last in the line for the money they tend to lose the most. |