What happenes to a stocks value if they bankrupt? - gm stock value per share
to say that the value of GM stock $ 2 's per share. Bankruptcy is that less than 2 or what? that the value to 0, or what?
Friday, February 5, 2010
Gm Stock Value Per Share What Happenes To A Stocks Value If They Bankrupt?
3 comments:
Ultimately, how many things in life, the answer is "depends."
Common shareholders have the highest risk in the capital of a company. This means that in the unfortunate event of bankruptcy, the shareholders in a position of "first loss" which means that the value of their degrees are more easily affected (negatively).
In bankruptcy proceedings, the court may ultimately decide how to distribute the remaining assets of the company. It) is determined by the priority rules (in the legal structure of the United States. Employees () past earnings, government (taxes due) and banks (bank loans outstanding) are the first to be paid. If there is money after they pay the bondholders. So, if the company has preferred shares or other securities higher, are paid to holders of such securities. Finally, if there is more money to common shareholders will receive a slight recovery in a per share basis. However, there is often more money after deducting any other legally "online" BefoYou Re.
So not really depend on the individual situation of the company. While you can get more than zero, as a common shareholder would be expected in the rule that once again very low.
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This is a solid mathematical question. It is Descartes' theorem to calculate the binomial distribution extended and integrated to determine the area bounded by the approximation of the equation. A super-computer can determine the answer, given enough time, to 10 decimal places:
$ 0.0000000000
Zip, Zero, Nada, nothing.
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