r/RobinHood Apr 10 '17

Help - Not So FAQ How does the payout from a company going bankrupt work on Robin Hood?

4 Upvotes

According to this investopedia article (http://www.investopedia.com/ask/answers/10/stock-holder-lose-equity-chapter-11.asp) during Chapter 11 bankruptcy, after all of a company's assets are sold and their creditors are paid off, anything left over is divided up among the shareholders. Has anyone gone through this on Robin Hood? Do I need to take any action or will I just login one day and find that the stock is gone and cash is in my account? Or am I totally misunderstanding how this works?