What happens to your stock if a company goes bankrupt but stays in business?
I have stock in GM. What will happen to my stock if they are forced into chapter 11? do I just lose everything or do I still have my shares for the future company? thanks for your answers. I am new to stock trading.
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Answer by donfletcheryh
If GM assets can not be sold for enough to cover GM debts, bonds etc, then the creditors will become the only shareholders of the company.
GM has debt far in excess of assets. so far in excess that there is no way the company can remain in the hands of stockholders through a full bankruptcy.
The fortunate part for stockholders is that they have paid out so many dividends that stockholders have already been paid off.
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