They're like, "I'll buy them back for zero, but you have to pay me ten dollars for the privilege of that transaction taking place. If you invested in penny stocks, or whatever, it might be that the cost of the transaction is going to be more, especially if you have to put in that transaction over the phone. You get charged with a phone transaction fee. Transaction fees are totally in flux right now. Brinsfield: Yes, and you actually get to write that on your tax return when you file, which I thought was fun.
It relates to that line item, not like a big red watermark across the thing, but Discounted offers are only available to new members. Stock Advisor will renew at the then current list price. Investing Best Accounts. Stock Market Basics. Stock Market. Industries to Invest In. Getting Started. Planning for Retirement. All stock pickers make mistakes, and sooner or later they make a really big one, investing in a stock that becomes completely worthless. What happens if the stock becomes completely worthless, so that a sale is no longer possible?
The rule described here is for worthless securities , a term that includes bonds as well as shares of stock. There are two big problems with the rule for worthless securities. If you claim it too soon, the IRS can disallow the deduction. But the same is true if you wait too long. You know your money is down the drain, but you may have a long wait before you can claim a deduction. On top of that, you have the hassle of trying to figure out exactly when the deduction is allowed, and the risk that the IRS will disagree with your judgment.
When you see one of your investments take a major hit, the tendency is to think you can recover your loss by holding on. More often than not, the best recovery available is the tax deduction you can establish by selling the stock. The same goes for stock held in your k account. Completely worthless. A security can be declared legally worthless only in the cases given below: The bankruptcy court has declared the company bankrupt under Chapter 7 or 11 The company has no shareholder equity A security cannot be declared worthless for any of the following reasons: The company is currently in Chapter 7 or 11 proceedings The company has no transfer agent The security has no bid, but the company is still viable The customer owns less than the minimum quantity to sell, set by the market maker The security is held in escrow At this time, your stock has not been coded as worthless.
Summary It appears that these shares are impossible to get rid of. I can't sell them on the market because there is no volume. I can't sell them to my broker for nothing or a penny because my broker doesn't support that. I can't transfer them to another broker who will buy them because their penny stocks, and most brokers including all of those I have accounts with won't accept the transfer of penny stocks. I can't get the physical stock certificate and sell them to a friend or shred it because the company doesn't issue physical stock certificates.
Furthermore, since it appears that the company was basically a stock dilution scam, there isn't a way to contact them directly. Improve this question. Community Bot 1. Henry Henry 1 1 gold badge 1 1 silver badge 8 8 bronze badges. This is a good article, bankrate. Have you tried a market order?
MarkDoony Yes I have but as I said originally there isn't any volume. I'd be interested to know what your broker would do with the shares if you closed your account. Hopefully they can't forcibly keep it open forever, particularly if they keep charging you for it. Add a comment. Active Oldest Votes. Improve this answer. I asked my broker and added their response to my question. I know this was already marked as a duplicate but the answer to the other question doesn't apply to mine because obviously , the broker isn't willing to do a courtesy sale or anything like that.
I can't comment on the other question to ask what to do, but maybe you could? My broker won't buy the shares from me, so am I just stuck with them forever? Hi Joe, Any comment on this? Sorry to be a bother, but since I can't comment on the other question not enough points and neither your answer here nor the answer there talk about what to do if the broker won't buy the shares from you, I'm kind of stuck and the information currently here isn't helpful.
Henry, I'm sorry, I have no other idea. I'd leave a market order, all or none, open, and hope it takes. I dug up an old article on Motley Fool and one approach they mention is to get the stock certificates and then sell them to a friend: If the company was liquidated, you should receive a DIV form at year's end showing a liquidating distribution.
Here's one way to do it: Get the actual stock certificates from your broker. Formally sell the shares to the purchaser, with a check for payment and a bill of sale. Sign over the stock certificate on its back to the purchaser. Better answer than mine, depending on what the broker tries to charge you for all this paper-shuffling. I have no idea if this would work, but another thought is that you could sell your stock at the lowest possible price put in an ask , then have a friend buy it through their broker.
In other words, you'd both become the market maker for that stock You might have to give your friend the ten bucks for their commission to get them to do it.
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