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Gold/Mining/Energy : Daytrading Canadian stocks in Realtime -- Ignore unavailable to you. Want to Upgrade?

To: Serge Collins who wrote (13455)	5/18/1999 8:16:00 PM
From: VisionsOfSugarplums	Read Replies (1) \| Respond to of 62348

OT Serge, I'm posting on this thread because this was where the two previous posts were made. I'm not sure what you were thinking, but a stock that is de-listed is still a stock of the Company and still exists as per the relevant Business Corporations Act. The fact that it is not trading on a listed exchange does not mean it does not exist. If the Company that is de-listed manages to list on another exchange - in that case, the old share certificates would have to be delivered to the transfer agent who would then re-issue new certificates. The common shareholders of the Company still own the common shares and new certificates would be issued for changed listing. If the Company saved itself from bankruptcy by obtaining creditor protection and then finalized a deal after it's stock had delisted - the value of the shares would be more difficult to assess (since there would not be a publicly trading market for them) but the owner of those shares would still own shares that have (hopefully) value after the creditors have been paid. If you had borrowed and sold those shares, you would have a potential liability to the owner of those shares. If, on the other hand, the company goes bankrupt and is therefore not listed any exchange, then the bankruptcy trustee, etc. would become involved, however as I'm sure you're aware there are a multitude of regulations covering this situation and can drag on. It is unlikely that a brokerage firm would disregard their statutory responsibilities and simply state that a stock "no longer exists" . The brokerage firm would require legal assurance that the Company no longer exists before they could establish that a client short position would not need to be covered. This is not necessarily a speedy process. Covering a short position before a stock is delisted is a simple solution. Forgive my lengthy post, but IMO this comment really isn't accurate: <<We're not talking about a halt, but a de-listing. Even if the stock lists on another exchange, it is no longer the same security, and as you know, there is no need to buy back a stock that no longer exists.>> I hope I haven't misunderstood your post. Regards, t.