How will the net assets of a bankrupt company be divided among the common share holders

What happens to share holders if a company goes bankrupt?

What Bankruptcy Means to Shareholders. If it’s a Chapter 11 bankruptcy, common stock shares will become practically worthless and will stop paying dividends. The stock may be delisted on the major stock exchanges, and a Q may be added to the stock symbol to indicate that the company has filed for bankruptcy.

What happens to shareholders when a company files Chapter 11?

Under Chapter 11, stockholders will cease to receive dividends and the appointed trustee may ask that stocks are returned in order to be replaced with shares in the reorganized company. However, you may also receive fewer shares, the value of which is worth less than the original stocks.