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lquadland10 (< 20)

What happens if?

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September 08, 2008 – Comments (7)

Say you have bought some stock from BS when they went out of bussiness what happens to the stock. What would happen if it were ING or E trade or what not. I don't know how that works. I just used these names because I see them around all the time. Thank You.

7 Comments – Post Your Own

#1) On September 08, 2008 at 2:18 PM, blake303 (29.20) wrote:

You would have received $10/share. Stock in Bear Stearns no longer exists following the takeover.

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#2) On September 08, 2008 at 2:35 PM, blake303 (29.20) wrote:

Sorry. I misunderstood what you were asking. I thought you meant "in BS" instead of "from BS". 

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#3) On September 08, 2008 at 2:37 PM, LordZ wrote:

If your talking about BSC the old Bears Stern company ? that stock was converted into JPM and some 3 to 1 or so ratio

so for like 4 BSC shares you ended up with one JPM

Now it could have ended up like old Kmart and Enron where you ended up with a zero value ending position.

 

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#4) On September 08, 2008 at 2:39 PM, blake303 (29.20) wrote:

I think the question is: what happens to non-BSC shares that were purchased through a brokerage account. In that case your shares would be moved into a brokerage account at JPM Chase.

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#5) On September 08, 2008 at 3:35 PM, lquadland10 (< 20) wrote:

Dear blake thank you so what you are saying is if I had stock in auy in ing then who ever took it over the auy is ok? But not the money market account.

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#6) On September 08, 2008 at 3:58 PM, blake303 (29.20) wrote:

It depends on if you are referring to a takeover or a bankruptcy and whether or not your accounts are insured. The Fed and JPM intervened in the case of Bear Stearns to avoid a bankruptcy. In a takeover, your accounts just move to the acquiring financial institution.

If ING hypothetically went bankrupt, your money market deposit account would likely be covered by the FDIC up to $100,000 and your retirement account/brokerage account may be covered by the SIPC up to $500,000 so your assets should be safe. Your bank can tell you if and to what extent your accounts are insured. 

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#7) On September 08, 2008 at 7:00 PM, lquadland10 (< 20) wrote:

Thank you.

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