of bankrupt companies...... So I'm thinking this company is going to dig out of this crisis and so I want to buy a little of their stock but it's under a different ticker symbol now. Here's where I'm needing help, if I buy some now and they go into the black and come out of bankruptcy, what happens to my stock? It's not going to go away unless they fold altogether is it? Greatly appreciate any insight from folks that actually know.
OK, think i figured it out, even though the company has filed for bankruptcy and sold it's assets to another, the stock is supposed essentially worthless. However, the company issues bonds that are still risky but are not worthless and have been increasing in value. Hope i got that right.
they don't issue the bonds when they're bankrupt, as no one would buy them at that point. but yes, their already existing bonds will be trading at a discount and be the best avenue to invest in a bankrupt company. depending on the seniority level of the bonds some will be riskier than others. also, if you hear that the bonds are trading at "47" for example, that means a bond originally worth $1000 is now trading at $470, not $47.
