What does it mean when a bank's stock fall below a penny?

[nc4bo]

Many DU'ers have been following it closely. http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x6571120

Think it will recover or is this the end for Silver State Bancorp? Why haven't we heard anything about this on M$M.

[sentelle]

1. It means

You can buy the company with your pocket change.

Of course, it also means that it is not worth what you paid for it.

[lapfog_1]

2. Most exchanges have a minimum share value that a stock

must maintain in order to be traded on the exchange.

Some "penny" exchanges will accept a below penny a share valuation, but likely not for long.

De-listing removes the corporations ability to raise additional capital by selling shares, which usually leads to dissolving or acquisition.

[DailyGrind51]

3. You can either buy lunch or buy a bank!

[DJ13]

4. It means another McCain was involved in a financial institution

[nc4bo]

5. So it'd be a steal? hehe.

This should be a front page story on the M$M. Andrew McCain linked to failed bank just like Daddy.

But since it's not an ideal world, it's just between us I guess.

[HCE SuiGeneris]

6. You get the same quality you get off the "value menu"...

best to forgoe the urge.

[Clear Blue Sky]

7. It means you don't want to own it.

[yellowcanine]

8. But you also don't want to sell if you do own it. Bummer.

[Clear Blue Sky]

15. You can sell it and write off the loss.

Though this year will provide mainly losses anyway.

[Crabby Appleton]

9. It's not below a penny, it's trading at $0.84 right now

(84 cents) They had much larger than expected losses in the 2ndQ results.

[nc4bo]

11. I'm on a deathwatch CrabbyAppleton.

[nc4bo]

12. I've never witnessed anything like this before - read about it sure...

Just how far can stock plummet before some kind of action will take place and how long will it take for a major news network to pick up the story.

I'm sorry......watching tax dollars constantly being tossed out the window is really getting to me.

[nc4bo]

10. Thanks for the "advice" everyone (I'm not being snarky).

I'm just highly p'd that no one will probably ever know about this outside of an internet connection.

[lpbk2713]

13. It means the bank's Directors are now living it up in the Cayman Islands.

Same old story, the rich get richer and the poor get .... screwed.

[Blue_Tires]

14. +1

[rainbow4321]

16. Theya re probably holding off for a few weeks so the headlines won't be

"Bank that McCain's son recently abruptly left has failed....".
I'd give it a month or 6 weeks from when he did the Saturday morning "I'm outta here" then it will buried on the last page of the financial section somewhere.

[CrazyDude]

17. That the bank's market cap is less than 1/100th of its shares outstanding n/t

[Canuckistanian]

18. One of our local companies was de-listed for being under $1

Zarlink - http://www.canada.com/ottawacitizen/news/bustech/story.html?id=3e301840-faf8-427e-aa3c-938fc6d4e60b

But that was after a 6-month period to allow it's performance to improve.

It didn't.