Is it true that if a company is coming out of bankruptcy the value of the shares bought bought before is 0?

Question

The value of the shares bought before bankruptcy has no value once company comes out of chapter 11?

Answer 1

after debtors:
bond holders, then preferred stock holders, then common stock holders...
normally, after the debtors and lawyers, there is very little for the bond holders ...and they go first..
there is almost never anything of worth left for the stock holders..and remember, preferred stock holders go next

common stock????
nada, nothing,zip, goose egg, bupkis, "0"........

Answer 2

At FINANCE-SOLUTION.US you can find the best financial solutions

RE Is it true that if a company is coming out of bankruptcy the value of the shares bought bought before is 0?

The value of the shares bought before bankruptcy has no value once company comes out of chapter 11?

Answer 3

The shares still have value when the company files for chapter 11. Chapter 11 says that the company is operating in bankruptcy which means that they can keep their assets which include stocks.