Before I get into details, is there anybody here who knows anything about stocks?
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Before I get into details, is there anybody here who knows anything about stocks?
Not me.
Well, when you put someone into stocks, you try to make sure their skin doesn't get pinched. I mean sure it's a bondage device, but it's not supposed to hurt eh?
What?
What 'other' kind of stocks is he talking about??
Oh, my bad!
Hmmm...not really, but maybe this'll help.
http://stocks.about.com/
I remember 1929...
Long story short, going through some of my father's things, my mother & I found an old stock certificate (he got it in 1953). I've looked online and the only thing I can find is that the company has changed it's name.
I'm wondering:
- Is the certificate still good even though it's in the old companies name?
- If it is, can we do anything with it?
My first instinct is that it should still be honored by the company. You should contact them and explain.
What Jace said.
Although, I'm using logic here, so that may mean I'm wrong. While corporate equity accounting isn't quite as tax law in that regard, it DOES make my head hurt.
Are you sure it is equity and not, perhaps, a bond?
A bond must be paid, no matter who's in charge at the moment. Unique case in which they are not paying bonds: bankruptcy procedure closed.
This may be: they changed name, so they probably have changed the main share-holders, and this happens mostly when a bankruptcy procedure is open.
If it is equity, you should try a professional advisor. The change in name may mean a merger, an acquisition, a fusion, whatever, took place and the treatment of old share-holders changes according to the contract CEO's signed at the moment of the transformation.
More detailed infos, after you find out the kind of title you have.
Uh, should I explain the difference between bond and share?
I agree. At least in UK law I'm pretty sure a change of name or even a merger shouldn't affect the value of your shares. Or stocks. Or bonds.
Equities I'm not sure about.
<font size="2" face="Comic sans ms, Helvetica, sans-serif">Probably. I am clueless when it comes to this stuff. It says "shares" on it, but I do not see the word "bond".Quote:
Originally posted by 3peanuts:
Uh, should I explain the difference between bond and share?
And thank you for the help. Much appreciated.
Then that means you own a share of the company.
[img]wink.gif[/img]
Back again.
IF you still need help...
Btw, Eris is right. You own a share of the old company. According to my knowledge of US Company Law, you have basically two options: keep the share or sell it.
If you decide to keep it, you have a right on dividends. Old share-holders are to be paid exactly like the new ones, but you really need to know what lies behind the changing of the name. Why? Bankruptcy=no more money. But even in this case, you still have a right on dividends grown during the activity of the old-name company, if they have not been requested. The procedure is basically an exchange between the share you own of the old com. and an equivalent (same value) share of the new. There are always contracts about the exchange price, but if they didn't bankrupt (in this case the price is fixed by the judge of the bankruptcy procedure), you can come to terms and fix the price according to the contract.
Exchange procedure is indeed necessary if you decide to sell the share.
The expert advise: try to find out more about the old company (for example via internet), and more about the reason of the changing of name. probably the share you hold still has a value of some sort.