Question on Equities

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  1. #11

    Join Date
    May 2009
    Location
    Jacksonville, Florida, U.S.A.
    Posts
    85

    Still a green dot in my book HKonelegger!
    The above posters are pretty much right. Companies that usually emerge from bankruptcy usually give their past shareholders the new stock; however, there's no guarantee that you will get 1:1 for all your shares held (as PDLM stated) or your shares will continue to be what they are currently worth. It all depends on how many shares they issue and what the markets perceive the intrinsic value to be in the end. The question is, what do you perceive their value to be and do you feel it's worth all the risk?


  2. #12

    Join Date
    Sep 2008
    Location
    Tai Kok Tsui
    Posts
    144

    I thought I had made it clear that the whole situation in essence isn't very clear. As with all less than usual investments their is a lot of inherent risk and a fair degree of luck involved.

    There are no guarantees as to what will happen in the event of a new code being issued it just seems more likely that you are not going to get the same value for your shares as when there was only the one code.

    That said for short term potentially very high returns can be made. As with all these types of things it is when you choose to cash in that is the key.


  3. #13

    Join Date
    Jun 2005
    Location
    in my home
    Posts
    3,451

    thanks for feedback gang.

    i got what i came for...and that was a realization that i do not automatically convert my stock into the new company as they re-emerge from bankruptcy. this is sad news...

    but i fully understand none of this is guaranteed and that i have to wage my own risks/payoff

    thanks for help everyone