What is a ‘worthless’ stock?

Worthless stocks have no market value and no potential to regain value. A declaration of ‘worthless’ most often occurs following bankruptcy. However, not all bankruptcies result in a worthless stock.

At etoro, once a stock is declared worthless, we close positions at zero and delist the asset from the platform.

Depending on where you reside, you may be able to claim a capital loss on stocks that become worthless. We recommend that you speak with a professional tax advisor for any tax-related questions you may have.