Defunct

AAA

DEFINITION of 'Defunct'

The condition of a company, whether publicly traded or private, that has gone bankrupt and ceased to exist. If the company was publicly traded, it will be delisted from the exchange where it was listed, and its stock will be worth nothing.

This term also applies to currencies that are no longer in circulation.

INVESTOPEDIA EXPLAINS 'Defunct'

In exceptional situations, the Securities and Exchange Commission does allow the stock of a defunct company to continue to trade for a period of time, but this is as a result of legal technicalities rather than a particular right or privilege.

History has seen many defunct currencies (e.g. the Greek drachma and the Dutch guilder). Currencies can become defunct for many reasons - for example, due to political upheaval or revolution, or because the currency has become worthless in the foreign exchange market.

RELATED TERMS
  1. Exchange Rate

    The price of a nation’s currency in terms of another currency. ...
  2. Currency

    A generally accepted form of money, including coins and paper ...
  3. Forex - FX

    The market in which currencies are traded. The forex market is ...
  4. Delisting

    The removal of a listed security from the exchange on which it ...
  5. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  6. Stock

    A type of security that signifies ownership in a corporation ...
Related Articles
  1. The Dirt On Delisted Stocks
    Investing Basics

    The Dirt On Delisted Stocks

  2. Forex: Wading Into The Currency Market
    Forex Education

    Forex: Wading Into The Currency Market

  3. What Is Money?
    Economics

    What Is Money?

  4. What happens to the stock of a public ...
    Investing

    What happens to the stock of a public ...

Hot Definitions
  1. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  2. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  3. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  6. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
Trading Center