Ask Matt: What happens to my shares of Kodak?

• Holding onto shares of companies on the way to bankruptcy protection is not a wise strategy
• Common shareholders are last in line for a company's assets, so they often wind up with nothing
• Kodak shares have collapsed and investors are best off taking their loss and moving on

USA TODAY markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com.

Q: What happens to my shares of the former photography giant, Kodak?

A: If you have to ask this question, you've held onto a stock too long.

Investors who own shares of once-powerful U.S. corporations, which have stumbled and fallen into bankruptcy protection, often think there's upside at the end of the process for them. Don't know if they're in denial or being loyal, but the idea that shares of companies that undergo bankruptcy restructuring have value is a prevalent one.

But the belief is far from the truth. There are exceptions, but most of the time when a company goes through the bankruptcy protection process, there's little if anything left for common shareholders.

It's just a matter of economics. Due to the nature of common stock, the holders are just about last in line for anything of value held by a company.

By the time the bondholders, creditors, employees and vendors get their due, there's little left for the original shareholders. Many times bondholders see their debt get wiped out, and get shares of the new company as a result.

That appears to be where Kodak is headed. Shares of the company are trading on an informal marketplace for about 20 cents a share.That's what they're worth.

Investors should have sold long before now. But if they haven't, they might consider selling this tax year so they can at least deduct the losses on their 2012 tax return.