How do I close a TD ameritrade account – penny stocks no longer in business?
RelentlessArrogance asked:
Hey guys, I want to cancel my TD ameritrade account. I put 200 bucks in it a year ago to play around with some penny stocks, well all my stocks are in companies that closed, or went out of business…so my 200 is taken, and obviously cannot be sold. The regular status says 200 in certain stocks, like 4 or 5 different onces, and it says my account balance is 0, and it says i am -40 bucks, since some stock went to .0001 before they closed down, etc. I know I don’t owe anything, because you can’t lose more than you put in. For example, if I buy 200 worth of stock for a company that is at 5 cents, and they go down to .0001 – I wont owe more than 200 buck right? since I just put in 200 bucks, and the market value is now at .0001, I took a 700% loss, but I dont think I owe more than what I put in. Anyway, I want to close the account, how do I go about doing it? can i do it online, and what do I do with the money that is in the stock of a company that closed down? I can’t sell it obviously.
Also, do i have to sell the options somehow even though the companies are closed? maybe I have to pay to close the account, or get back to zero ?
Hey guys, I want to cancel my TD ameritrade account. I put 200 bucks in it a year ago to play around with some penny stocks, well all my stocks are in companies that closed, or went out of business…so my 200 is taken, and obviously cannot be sold. The regular status says 200 in certain stocks, like 4 or 5 different onces, and it says my account balance is 0, and it says i am -40 bucks, since some stock went to .0001 before they closed down, etc. I know I don’t owe anything, because you can’t lose more than you put in. For example, if I buy 200 worth of stock for a company that is at 5 cents, and they go down to .0001 – I wont owe more than 200 buck right? since I just put in 200 bucks, and the market value is now at .0001, I took a 700% loss, but I dont think I owe more than what I put in. Anyway, I want to close the account, how do I go about doing it? can i do it online, and what do I do with the money that is in the stock of a company that closed down? I can’t sell it obviously.
Also, do i have to sell the options somehow even though the companies are closed? maybe I have to pay to close the account, or get back to zero ?
If your balance is $0.0 (zero) you don’t owe any money, it doesn’t matter where the value of the stock drops, you still don’t owe any money.
There is no money in the stock you own, you bought stock, paid for it, then the value went down, you lost money.
If they had some value you could go to another broker/de;er and open an account, (can be done on line), comptete ACATS forms (on line depending on the firm) and they will have the stock shipped to the new broker
If you have a position in stock and there is no value, you can have the firm transfer & ship the stock to you or ship street name stock to you.
If the stock you bought were pennys stock, therefore there are no options
You don’t have to close the account once you ask for the stock and they deliver to you.. After about eighteen months of no activity the account will become inactive and after a priod of time the account will be purged from the system
BOTTOM LINE, just walk away, since you don’t owe any money.
Before you trade again or open another account, it would be in your best interest to learn about securities. how the trade, and what markets they trade in.