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Old 11-19-2014, 12:40 PM   #1
Mr. Questionman
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Default Trading in shares of Chapter 11 stocks (bankrupt companies)

(MoneyWatch) You may not be aware that there exists active trading for Chapter 11 stocks throughout the bankruptcy process. Chapter 11 is a form of bankruptcy that involves a reorganization of a debtor's business affairs and assets, generally filed by corporations which require time to restructure their debts. Chapter 11 gives the debtor a fresh start, subject to the debtor's fulfillment of its obligations under its plan of reorganization. While you can dabble in this market in hopes of scoring a big gain, the data shows it isn't likely to pay off.

Trading in shares of bankrupt companies - CBS News
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