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joyj2nd | 5 years ago
That you can not trade the stock for now. Trading has been resumed. On many stock exchanges there are rules for this. Something very common.
> And what is the reason behind that? Is it guaranteed that shares of a company that files for insolvency are worth 0?
No. The company could recover, could get bought etc. As a stock holder you are the last in line. Should the company get liquidated, bond holders will have a higher priority for any money recovered.
> And therefore the exchanges want to save uninformed investors from buying them?
No. Please look up Hertz, the car rental company and what is happen recently the stock. They are bankrupt, people are buying the stock and Hertz was even allowed to issue more shares.
0xffff2|5 years ago
Eh, sort of. The bankruptcy judge said they could, but the SEC said they had some "questions" about the offering's prospectus and Hertz basically withdrew the offer after that. It's not clear whether the company actually sold any shares.
docdeek|5 years ago