Worthless Securities

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Dictionary Says

Definition of 'Worthless Securities'

Securities that have a market value of zero. Worthless securities can include stocks or bonds that are either publicly traded or privately held. These securities result in a capital loss for the owner and can be claimed as such when filing taxes.
Investopedia Says

Investopedia explains 'Worthless Securities'

The problem with declaring worthless securities as a loss for tax purposes is that you must sell  securities before making this claim. Unfortunately, worthless securities are unsellable. Another difficulty comes from investors who own securities that they are not sure are totally worthless in a given year. If they go ahead and declare them as such and then they are deemed to have value the next year, taxpayers can file an amended return for the previous year and redeclare the loss the following year.
Search results for

'Worthless Securities'

  • The SEC: A Brief History Of Regulation

    http://www.investopedia.com/articles/07/SECbeginning.asp
    ... Who They Are And What They Do.) These state laws were meant to protect investors
    from worthless securities issued by unscrupulous companies and pumped by ...

  • Is Aflac Insurance A Sitting Duck?

    http://stocks.investopedia.com/stock-analysis/2009/Is-Aflac-Insurance-A-Sitting-Duck-AFL0213.aspx
    ... Investors are concerned over whether these banks will be nationalized by their
    respective governments, rendering the securities worthless. ...

  • Tips For Series 7 Options Questions

    http://www.investopedia.com/articles/professionaleducation/06/Series7Options.asp
    ... Sellers, on the other hand, want the contract to expire worthless because this is
    the only way that the seller (short) can keep the entire premium (the maximum ...

  • Series 63 Study Guide - Interviews - Dave | Investopedia

    http://www.investopedia.com/exam-guide/series-63/interviews/dave-interview.asp
    ... time was average, and his experience is one that the average securities professional
    should ... The goal is to have the option expire worthless so that the premium ...

  • The Short And Distort: Stock Manipulation In A Bear Market

    http://www.investopedia.com/articles/analyst/030102.asp
    ... the Financial Industry Regulatory Authority (FINRA) (formerly the National Association
    of Securities Dealers), or that they can regularly spot worthless stocks ...

  • Series 7 Study Guide - Derivatives - Option Positions ...

    http://www.investopedia.com/exam-guide/series-7/derivatives/option-positions.asp
    ... requirement for a covered call; that is, because the underlying securities are sitting ...
    has to pay the full exercise price for a completely worthless stock. ...

  • Private Education Gets A Boost From The Feds

    http://stocks.investopedia.com/stock-analysis/2008/Private_Education_Gets_A_Boost_From_The_Feds.aspx
    ... is so bad that some student loans are being considered worthless by investors ... Student
    loans are often securitized into so-called auction-rate securities. ...

  • Series 66 Study Guide - Exam Preparation - Introduction ...

    http://www.investopedia.com/exam-guide/series-66/exam-preparation/default.asp
    ... a securities transaction or benefiting (ie commissioning from) a securities-related
    transaction ... The goal is to have the option expire worthless so that the ...

  • Options Trading With The Iron Condor

    http://www.investopedia.com/articles/optioninvestor/06/ironcondor.asp
    ... This creates the credit, with the hope that both options expire worthless, allowing
    you to ... Your broker will only ask that you have cash or securities in your ...

  • Using Options Instead Of Equity

    http://www.investopedia.com/articles/optioninvestor/07/options_instead_equity.asp
    ... the gain on equity movements without purchasing the underlying securities, yet only ...
    Now, the obvious risk is that LEAPS can expire worthless while stock always ...

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