I-Glow
2 days ago
I doubt many understand what investing in a Q stock meaning.
In the hierarchy of who gets paid in a bankruptcy:
1. The Government
2. Secured creditors
3. Unsecured creditors
4. Preferred Shareholders
5. Common shareholders
If any of those above the common shareholders are impaired - then by definition the Common Shareholders are impaired and in most cases the shares are canceled.
Did anyone read the SEC warnings about investing in Q stocks.
"What are the risks of investing in a bankrupt company?
When a company files for reorganization under the federal bankruptcy laws, investors may be tempted to buy or hold the companyโs common stock in anticipation that the company that emerges from bankruptcy will be profitable. The reality is that when companies emerge from bankruptcy, the โoldโ common stock of the company is usually worthless. In most instances, the companyโs plan of reorganization will cancel the existing shares of common stock."
In many cases the Judge orders the Trustee or Monitor to liquidate the company and investors will lose their entire investment.
Stop the pinkyland wishful thinking - there won't be any miracles.
IG