Liquidating money updating brass lamps
Csiszar has served as a technical writer for various financial firms and has extensive experience writing for online publications.
© Crown copyright 2019 This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated.
After receiving a Bachelor of Arts in English from UCLA, John Csiszar earned a Certified Financial Planner designation and served 18 years as an investment adviser.
Corporate stock in a liquidation bankruptcy is ultimately worthless, since it represents ownership in a company with no assets that no longer functions as a going concern.
A Chapter 11 bankruptcy, as opposed to a Chapter 7 bankruptcy, does not always result in the liquidation of stock, since the company ultimately emerges from bankruptcy after reorganizing its debt.
At the time of your initial purchase, you must meet the initial maintenance requirement of 50 percent equity, meaning if you buy ,000 in stock you must put up at least ,000 yourself.
If your equity ever falls below the minimum maintenance requirement, which is usually between 25 and 40 percent, your firm will issue a margin call.