Cryptocurrency Q&A
What happens to shares after liquidation?
What happens to shares after liquidation?
SumoMighty
Mon Dec 30 2024
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5 answers
1028
I'm wondering about the fate of shares following a liquidation process. Specifically, what becomes of them after a company goes through liquidation?
5 answers
CryptoTitanGuard
Wed Jan 01 2025
Trading of the shares of such a company is immediately halted. This measure is essential to prevent any further market manipulation or confusion among investors.
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Giulia
Wed Jan 01 2025
Following the halt in trading, the shares of the liquidated company are deemed worthless. This terminology reflects the reality that the company has ceased to exist, and its shares have lost all value.
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Maria
Wed Jan 01 2025
Shareholders who hold shares in a liquidated company have the option to declare these shares as a capital loss. This declaration is crucial for their financial planning and tax purposes.
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CryptoNinja
Wed Jan 01 2025
When a company finds itself in liquidation, a crucial change occurs in the status of its shares.
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SumoPower
Wed Jan 01 2025
Declaring the shares as a capital loss can have tax benefits for the shareholders. It may result in a reduction in their Income Tax obligations, providing some financial relief in the midst of their investment loss.
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