Death Knell Stocks
Definition of 'Death Knell Stocks'The shares of a publicly traded company that is on the verge of insolvency or bankruptcy. A death knell stock typically trades for less than $1. Death knell stocks are considered a very high risk investment. Sometimes companies can recover from such a poor financial position, but even if they do, they still may not be stable or be expected to last in the long run. Investors in death knell stocks may not earn a return on their investments and may even lose their principal. |
|
Investopedia explains 'Death Knell Stocks'Despite their low share price, death knell stocks should not be confused with penny stocks; the latter are typically micro-cap stocks that trade over the counter and have low volume. A historical example of a death knell stock is Lehman Brothers' stock, which collapsed in the blink of an eye in 2008 as the company went under. |
Related Definitions
Articles Of Interest
-
The Dirt On Delisted Stocks
Listed securities are "the cream of the crop". Find out how a firm can lose that status and why you should be wary. -
An Overview Of Corporate Bankruptcy
If a company files for bankruptcy, stockholders have the most to lose. Find out why. -
Taking Advantage Of Corporate Decline
A bankrupt company can provide great opportunities for savvy investors. -
Bankruptcy
Learn what happens when an individual or an organization files for bankruptcy. -
6 Decisions That Cost Companies Millions
Here are some of the worst business decisions of all time, made across a broad range of sectors and industries. -
A New Plan To Prevent Future Bailouts
This new and innovative plan by the FDIC could help the government avoid the next bailout. -
The Evolution Of Video Rental Stocks
Video rental customers have gone from using video stores to streaming selections available at home. Here's how it happened. -
4 TARP Recipients That Made A Profit
New estimates show that the TARP program may show a profit of $23.6 billion over the life of the bailout program. -
Failed IPOs Of The Dot-Com Bubble
We look at some of the most infamous flops of the first dot-com bubble. -
How The U.S. Automobile Industry Has Changed
We give a brief history lesson on the rise and fall of the American auto industry.
Free Annual Reports