Do they just sell your shares and give you your money or will they convert them into whatever the new ticker symbol will be?
2007-02-02 06:01:38 · 3 answers · asked by Anonymous in Business & Finance ➔ Investing
Typically (like Kmart and Winn Dixie) when a company emerges from bankruptcy, it will issue new stock - the old stock is canceled and worthless. Deals are struck with creditors and they receive a great majority of the new stock to satisfy debt - the old shareholders will receive nothing.
2007-02-02 06:19:03 · answer #1 · answered by dashel_gabelli 3 · 1⤊ 0⤋
Funny.
In the scheme of things, shareholders are the lowest priority creditors of the company. Once a company goes bankrupt, its shares plummet for a very good reason: they are now worth next to nothing. They are delisted from their old exchanges, and trade under altered tickers until the company emerges from Chapter 11, at which point the court cancels all old shares.
2007-02-02 06:07:15 · answer #2 · answered by kx_wx 3 · 1⤊ 0⤋
When a company goes bankrupt, the shares become worthless. The stockholders are the last people in line to be compensated which usually amounts to zots!
2007-02-02 06:10:57 · answer #3 · answered by Chic 6 · 1⤊ 0⤋