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I bought some shares of a distressed company that I thought had a good chance of a turn around. Unfortunately, it did not, and the stock now trades OTC for less than 2 cents.

My shares are worth about $15, but the commission I'd have to pay for a sale is $25, so I would incur a further loss of $10 just to sell.

Will I ever be compelled to close out this position?
Can I just let it sit fallow forever and never pay this commission?

abelenky
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1 Answers1

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Can I just let it sit fallow forever and never pay this commission?

Generally yes. There is no one forcing you to sell anything.

The other things to consider is;

  • Some brokers allow worthless stocks to be relinquished.
  • If the company does not shut down properly; you may be holding something that you can't sell or do anything.
  • Some brokers charge a small fees to carry the shares ... check if this is the case.
Dheer
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