Management would walk away with its $ 3 million cash windfall; shareholders would get stuck with potentially
worthless stock in a merged company.
Not exact matches
We're back
in a frothy market where
in stead of being considered that they might be spending tons of money winning shares a company that one day could be
worthless (like the
stock of many startup companies)-- they always believe they're fighting for millions.
Enron's collapse put more than 5,000 people out of work, wiped out more than $ 2 billion
in employee pensions and rendered
worthless $ 60 billion
in Enron
stock.
Senior executives at China's Big Four state - owned banks say regulators are also exploring ways for banks to exchange bad loans for equity
in certain too - big - to - fail companies — a potentially controversial step that they say could saddle banks with near -
worthless stock and squeeze their liquidity.
I liken die hard believers
in this nonsense ideology to someone who invested all his money
in worthless stocks.
Imagine what happens, when the dollar collapses, and everyone with an account
in the Cayman Islands, is STUCK with
worthless paper and
stocks?
Furthermore, «predictions»
in any ancient book are
worthless unless they can name SPECIFIC future events, names, scores at sporting events, when to sell or buy
stocks, etc., which your
worthless tome of a bible certainly DOES NOT!!!
T - Mobile thought it was okay to change my order to one of the
worthless Curves they already have
in stock, (which they realize they will have a lot of trouble selling for even 50 bucks at this point) and decide to send me this, charge me 99.99 with a $ 50 mail
in rebate... because they are «temporarily out of
stock».
When Enron, a huge energy company, had it's share price go from above $ 90.00 to less than a dollar before the company's eventual bankruptcy, the owners of Enron common
stock faced the potential of receiving nothing
in return for their
worthless shares.
That means that (1) you receive $ 15 / share
in cash today, and (2)
in 2 months time you will either lose your
stock at $ 90 (plus the $ 15 you got today, for a total of $ 105 / share), buy back the call options (and perhaps sell others), or keep your
stock and have the options expire
worthless (if the
stock is below $ 90 on option expiration day).
All
stock pickers make mistakes, and sooner or later they make a really big one, investing
in a
stock that becomes completely
worthless.
Quick review (if you need a longer explaination, see the covered call tutorial): (1) you need 100 shares of
stock or ETF, (2) you then sell 1 call option (because options control 100 shares) against the
stock / ETF you own, and then (3) at expiration you may end up having your
stock called away (and receive cash) or you may end up owning your
stock and having the call option expire
worthless (
in which case you can sell another call for the next cycle).
The answer is that you're allowed to claim the loss
in the year the
stock became
worthless — but only under a strict rule that poses problems for many taxpayers.
When the option expires you may end up having your
stock called away (and receive cash) or you could end up owning your
stock and having the call option expire
worthless (
in which case you can sell another call for the next cycle).
Over the next six months, if the
stock never increases to $ 52, the call options will expire
worthless: you get to keep your shares
in BigBank, any dividends the company paid, and the $ 1,200 premium.
As a company employee who was being granted
stock options each year, it wasn't at all uncommon for people to sit around the water cooler and lament that fact that each year, we get these options that only expire
worthless a few years later because the firm was
in a continual state of share price decline.
Owning calls fixes the price where a security can be purchased, so they can ratchet up
in value when a
stock rallies or expire
worthless if no move occurs.
Just for fun, let's also assume we know ahead of time that one of the
stocks in Mr. Jones's portfolio is going to go bankrupt (that is, decline until it becomes
worthless) sometime within the next year.
As such, the concept of a stop doesn't pair well with the entry as whatever level you choose, the
stock may not have bottomed yet (
in a short term sense) until it becomes so large as to be
worthless.
Stock - centric investors such as Warren Buffett think it's a
worthless «pet rock» that fails to appreciate
in value.
In this example, the investor is hoping that Intel \'s stock price will appreciate, and that the short put option will expire worthless in 180 days, leaving the long put option in place as a hedge for the next 360 day
In this example, the investor is hoping that Intel \'s
stock price will appreciate, and that the short put option will expire
worthless in 180 days, leaving the long put option in place as a hedge for the next 360 day
in 180 days, leaving the long put option
in place as a hedge for the next 360 day
in place as a hedge for the next 360 days.
Assuming the
stock remains above $ 13 and the puts expire
worthless, our $ 36 profit represents a 2.8 % return over the $ 1,264
in capital set aside.
If a company declares bankruptcy then the publicly traded shares of
stock in that company become
worthless.
They did not just avoid the area (don't invest
in thrifts or banks, don't invest
in home building
stocks, don't invest
in mortgage guaranty insurers) but found vehicles to invest
in that would go up as the housing market bubble burst and the mortgages became
worthless.
All I meant by «making good picks» is that I follow a lot of things
in depth that directly pertain to
stocks and I know if a
stock is
worthless or if it's going to be bad just because dealing with it daily.
If the
stock falls
in between those prices, both contracts expire
worthless.
If everything expires
worthless, you walk away with your
stock in your hand.
Worthless tulip bulbs, internet
stocks, and so on, have generated incredible returns
in periods of time that Buffett was never able to match.
That said, I am no longer interested
in this
stock and I will do all it takes to let the put option expire
worthless.
If this expires
worthless in 1 weeks, this will generate a 2.5 % yield at the current
stock value.
In addition, a warrant is
worthless if the market price of the common
stock does not exceed the warrant's exercise price during the life of the warrant.
In a pump and dump scam, the bad guys load up on a cheap and
worthless stock, convince inexperienced investors to buy it at inflated prices (pump), and sell their shares off when the investors push the price up enough (dump).
The recent string of downloadable game pre-orders that have run
in the Playstation Store were ostensibly
worthless, allowing would - be buyers to give their money
in advance for digital items that are inherently incapable of going out of
stock, and typically offering something as trifling as an XMB theme
in return for early payment.
The
stocks were often used as fodder for «pump - and - dump» schemes, where
stock brokers dupe their clients to buy shares
in shell companies, raising the price of the
stock, before the initial shareholders would sell off their shares for a profit, leaving the shares
worthless.
The jury awards Perelman — who had sued Morgan over its role
in his sale of Coleman to Sunbeam for
stock that became
worthless after an accounting scandal led to bankruptcy — $ 1.45 billion
in damages.
Now, it's true that at the peak of the bubble, the naive
stocked up
worthless investments but those who invested
in, say, Amazon.com, Inc. (NASDAQ: AMZN) are today sitting on a jackpot.