Bankruptcy

[Stingray77]

Hi support 

Can you tell me what happens if a share ceases to trade, because the company has been wound down? I.e if I had a position of £200 pp in a 2p share would that be a £400 loss or would my position just cease to exist and I'm liable from what ever positive or negative balance I gave on that share?

[AndaIG]

1 hour ago, Stingray77 said:

Hi support 

Can you tell me what happens if a share ceases to trade, because the company has been wound down? I.e if I had a position of £200 pp in a 2p share would that be a £400 loss or would my position just cease to exist and I'm liable from what ever positive or negative balance I gave on that share?

Hi @Stingray77

Thanks for the question

We will close your position at a price of zero, meaning that you would realise the GBP400 loss. We will then typically open a proceeds line which is untradeable and brings no value to your account. If the company is ultimately declared worthless and there is no return to shareholders, then the proceeds line will be closed at a price of zero. Hope this helps

Regards

Anda

[JavierPuente]

When a share ceases to trade because the company has wound down, your position doesn't just vanish into thin air. You'll still technically hold those shares, but here's the kicker: their value can take a nosedive, often plummeting close to zero. So yeah, you'd be facing a substantial loss on your initial £200 investment per share. Now, the real deal here is understanding the nitty-gritty of the company's insolvency. It's not just a one-size-fits-all scenario. Factors like the company's assets, debts, and whether there's anything left for shareholders play a big role in what you might recover. To get a clearer picture and explore your options, I recommend reaching out to insolvency and restructuring practitioners. These folks are like financial detectives. They can dig deep into the company's financial situation and provide you with expert guidance based on the specifics.