What does a share price of $0.00 mean?

[DDH]

Hi everyone,

I am new to the forum - please be kind if this is a silly question!

E.g. Last week, GDA's stock price fell from $0.02 to now - $0.00. Zilch. Zero. What does this mean for the investor? ( Don't worry, not me - just using as an example). Does that mean your $ invested are permanently lost/gone? Can a share price recover from $0.00? (Of course, so long as no receivership is announced).

Thanks everyone!

 

[pixel]

Hi everyone,

I am new to the forum - please be kind if this is a silly question!

E.g. Last week, GDA's stock price fell from $0.02 to now - $0.00. Zilch. Zero. What does this mean for the investor? ( Don't worry, not me - just using as an example). Does that mean your $ invested are permanently lost/gone? Can a share price recover from $0.00? (Of course, so long as no receivership is announced).

Thanks everyone!

As so often, the answer is "It Depends."
You have to know why the price has dropped to zero. Visit the ASX website http://www.asx.com.au/asx/statistics/announcements.do?by=asxCode&asxCode=gda&timeframe=D&period=M and check company announcements.
In GDA's case, there has been a reconstruction. During the transition phase, the code GDA is no longer quoted; trades at the new price level are recorded under GDADA with settlement deferred.

If any of the above terms sound like gobbledegook, you can study up on them by searching the Education pages http://www.asx.com.au/resources/shares-education.htm on the ASX website.