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I'm presuming by administartion you mean in Bankrutpcy of some type, probably C-11 or C-7 in the US. Although the answer is basically the same everyplace. Stock in a company is equity - meaning ownership. Compared to creditors who simply are owed by the company. Stockholders are NOT creditors...the company "owes" them nothing...as owners they had the right to share in profits of the company - botht the earnings and the possible appreciation in their ownership. Debt does not. It only has the right to get paid what it is owed. Hence, a company in bankruptcy. recievorship, administration - whatever one wants to call it...is there because it's liabilities (it's debts) are more than it's assets. (Or maybe it has plenty of assets, but if they were used to pay debts, it could no longer operate). Hence, when you own that company if you will - you owe a net liability - nothing of value to you...the stock is normally trading, or valued as such..for pennies. The BK or process may allow the company to escape paying some debts and such, in order to continue operating...but normally, in exchange for not getting paid what they are owed, those creditors (frequently banks/lenders rather than the trade vendors), agree to take the stock of the company and hope to revivie it, sell it and recover their loss. So the shares of a BK company are almost always worthless, are frequently eliminated in exchange for discharge of debt (sold for the debt), with a new reorganized company taking it's place, or if that can't be achieved....the assets of the Company are sold and IF (thats a big if), there is more money realized on the sale than is owed, the excess would be distributed to the stockholders as a liquidating distribution.

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Q: What happens to shares when company is in administration?
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