Thread: smoking investment?

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  1. #1

    Default smoking investment?

    I've seen overtime a few stock symbols not giving me anymore a chart. I guess the company shut down. What happens next with the shareholder's money, specially with penny' stock if the company vanishes? Would they mail you back your investment?
    Sorry the dumb question.
  2. #2


    Have an example? Some penny stocks just don't trade very often and are extremely risky. When you buy a stock you're giving money to someone else who is selling. That money can't be returned unless you sell your shares to another buyer.
  3. #3


    I have often wondered about that so let me ask you ... just looking at your statement then there would be no reason for the stock to go up or down in price. You have a million shares out there that either mr. a, b ,c, own or mr x. y. z. as that rate, either you or I own the shares as one must be sold to the other. What am I missing?
  4. #4
  5. #5


    Well remember there are more than 2 people investing. Millions of people/entities are investing/trading stocks. Liquidity comes in to play here. Also they don't have to be sold or bought. Someone could potentially own the whole float. The float is the amount of trade-able shares available. There are instances of stocks with extremely small floats being able to run or drop large percentages in very short amount of time if a large buyer or seller comes along.

    The SEC frowns on manipulating penny stocks. One could own a large percent of the float or control shares that have not entered the float yet. (Example: converting a convertible debt note into shares) They could control the supply. This will get you in trouble these days if/when that penny stock is a shell with press releases touting false numbers and deals are being printed. LIFS was halted Tuesday and NVGC was halted Wednesday for essentially being pump and dumps; as examples.

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