Expert: Paul Henneman - 8/25/2009

Question
I own shares of Circuit City, which of course went under. It still shows value. Why is this? What was $5k is now $5 so I figure I will just keep it. Should I sell and buy myself lunch at a local fast food restaurant?

Answer
Keith,
  Thank you for your question! Unfortunately your stock is essentially worthless. The company is in bankruptcy, and liquidating all assets. The stock no longer trades on a major exchange, although I believe that it still trades on the much less regulated "over the counter" exchange. If you can sell it, do it and take the tax credit! You can declare the loss on your tax returns at the end of the year.

I hope this helps, please do not hesitate to follow up with me if I can offer anything additional,

Sincerely,
Paul Henneman
President
ValuEngine Inc
www.ValuEngine.com