I own stock in a company that has been in bankruptcy and now they are emerging from Chapter 11. I know no 1 can say whether the stock may go up or down for sure, but I am concerned if the stock may disappear as part of the bankruptcy deal? Can the stock be dissolved completely? The company may be a functioning company afterwards.
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what will happen to stock in a company coming out of bankruptcy?


exactduke 7:05 am on November 23, 2009 Permalink |
I am concerned if the stock will disappear as part of the bankruptcy deal? Can the stock be dissolved completely?
Your stock is worth zero. When companies come out of bankruptcy, they issue new stock. You will likely get none of this new stock. So yes, your stock will disappear & be dissolved.