How can I sell stock that has declined in value?
July 13, 2005
Subject: selling private stock
Date: Tue, 14 Jun 2005
I own about 600 shares of Paper Converting Machine Company. The value has declined from over $150,000 to $60,000 over a period of a few years. I need to sell the stock, but nobody will buy it because of the drop in value. How can I sell it?
Thank you for all your help!
Date: Wed, 06 Jul 2005
I am not a stock broker. From your explanation, it appears this company is not traded on a public market. If it is, see a stock broker about how to sell it. If it is a private company, you need to find a shareholder (maybe the president?) who is willing to buy it privately, or find out if the company will redeem the shares.
It can be very hard to the sell the stock of private companies. I think it’s not usually a good idea to buy a minority share of stock in these companies unless the value is very small, a public offering is imminent or there is some other compelling reason.