posted
Does anyone know what happens to the shares currently held after they come out of bankruptcy next month. I keep seeing shares being traded.
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posted
99.9% of the time, new shares will be issued but only to creditors. Very rarely do old share holders get any of the new shares. The old shares you hold now becomes worthless as of the day new shares are issued. Then the old shares will no longer trade on the market. Never hold stocks that end wih Q (bankrupt) very long. You could be caught holding on turnover and your shares worthless in matter of seconds.
-------------------- Invest with your brain not with your heart.
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Ric, not sure where you get your statistics I just know that you are absolutely incorrect. As of the day the new shares are issued your FMKIQ will be worthless, that is a fact, but what Ric fails to understand is that as a shareholder you are a creditior and are a part of the reorganization plan. As a part of the company emerging from bankruptcy you will be given something, which is usually some of the new company's stock, but it all depends on the plan, and many times if the company has a bright future the stockholders are indeed taken care of.
This is not an endorsement of FMKIQ because I know nothing about the company, but other bankruptcy stocks indeed become very lucrative and I wanted to clear that up.
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