What do you do when a stock investment goes bankrupt?
I bought some shares or GM awhile back and stop paying attention to the market when I started school.
As of now GM has gone bankrupt and they keep sending me a letter but in all honesty I am not sure what i am suppose to do.
It says all transferred and trades must be approved or something,
But any how what do I do,
Better yet what am I allowed to do with bankrupted stock?
I don’t have a broker,
Will it be the same if I do it myself?
Ask your stockbroker what to do.
Personally, I would just line my birdcage with the shares.
May 29th, 2010 at 11:48 pmJust hang on to it right now and see how things ride out.
May 29th, 2010 at 11:48 pmIn a corporate bankrupcy proceeding the government steps in and
reorganizes or liquidates the company. I think in GM’s case they are going to be reorganized. You should get more info on the proceeding. I think you should wait till GM is back on its feet again and the stock is viable again.
http://www.sec.gov/investor/pubs/bankrupt.htm tells you more about it.
May 29th, 2010 at 11:48 pmVC is wrong, the stock will not be viable again. It will soon be cancelled – worthless. So put in a sell order with your broker now. As soon as the 10 day SEC ordered trading halt period is over make sure you broker sells it.
May 29th, 2010 at 11:48 pm