A listed company refers to a joint stock limited company whose shares are listed and traded on the stock exchange with the approval of the securities administration department authorized by the State Council or the State Council. Before the company goes bankrupt, listed companies that have suffered losses for two consecutive years will be converted into ST shares (delisting risk warning) and then into *ST shares (three years of losses, serious delisting risk warning). By the end of the third year, if it cannot turn losses into profits, the listing will be suspended, and by the end of the fourth year, it will be transferred to the delisting period. At the end of the delisting period, it will be transferred to the OTC market.
If a listed company goes bankrupt, it must first go through bankruptcy liquidation. Liquidation of assets generally requires payment of liquidation expenses, state taxes, employee salaries, etc. Only consider the interests of shareholders. Generally, bankrupt companies are insolvent and few assets are distributed to shareholders.
At present, few listed companies in China go bankrupt. Even if they go bankrupt, they will go bankrupt and reorganize, and their shares will not be worthless. For investors, it is really rare for listed companies to suddenly close down and then lose all their money. At most, the stock price fell to 1.