How to Sell Delisted Shares
Research the company and its performance.You can reduce some of the inherent risks in Over-the-Counter (OTC) trading if you know as much as possible about the company and its history. Go to the company's corporate website and read company news and press releases.
- Review annual reports going back several years to get a sense of the company's financial well-being. If the company has its quarterly conference calls archived on its website, listen to the two most recent calls to get a sense of what's going on in the company and how its executives are handling the situation.
- In addition to information provided by the company itself, look beyond the company to get a sense of its reputation and what other investors as well as experts in the industry are saying about the company and its future.
Find out why the company was delisted.A company may be involuntarily delisted because it failed to meet the minimum standards, or because it didn't pay the annual listing fees. Companies also may voluntarily choose to delist from an exchange.
Decide what you want to get out of the stock.Based on your overall investment and the length of time you've had the stock, you may have a minimum price that you'd like to get from the stock. Even if that price still represents a loss, this is the amount at which you're comfortable selling the stock.
- If you're risk-averse and aren't interested in trading on the OTC market, you may just want to get rid of the stock as soon as possible. However, with a little bit of patience, you may be able to get a better deal.
- OTC markets have low-price stocks that typically attract smaller investors interested in "playing" the markets for out-sized payoffs. If you're willing to wait out some of the volatility, you have the potential for a larger return.
Confirm the trade.Tell your broker-dealer the type of order you want. They then work to execute the trade. Your broker-dealer may complete the trade internally, or search for another broker-dealer with a matching investor.
- Your broker-dealer may have to adjust the price you set in your order, depending on market fluctuations. For example, if the price you specified in a limit order is much higher than the price at which the stock is currently trading, the order is no longer marketable and your broker-dealer would have to lower the price.
- Before your broker-dealer completes the trade, they will seek confirmation from you that you are willing and able to complete the trade at the terms offered.
- If your broker-dealer completes the trade internally, FINRA regulations require them to give you at least the best-available quoted price.
Writing Off a Loss
Talk to your broker.Many brokers will buy worthless (or nearly worthless) stock from customers. That way you can easily get rid of the stock and get a trade confirmation for your tax records.
Use Schedule D to summarize your capital gains and losses.Investments in the stock market are capital investments. Other capital assets include real estate, equipment, and furniture. Losses from personal-use property, such as your home or your car, can't be deducted – but investments in stocks always can.
- Download the paper form at .
- Sales of stock will represent either a capital gain or capital loss to you, which you must report on your tax return for that year. Capital losses are tied to capital gains. You calculate them separately than your other income, such as wages or income from a business.
Video: What You Should Do During A Stock Delisting
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Date: 04.12.2018, 21:04 / Views: 55533