Stocks Company
What happens to the stocks of a bankrupt company if the company is bought by some other company?
What happens to the stocks of a bankrupt company if the company is bought by some other company.
I am plaaning to buy stocks of Bearing point. The company is bankrupt now and selling its operations across the globe. What will happen to my stocks if I buy them?
Only if a company comes in and offers to buy the company as a whole will you Make Money through that sale. For example, IBM recently offered to buy Sun Micro for $9.40 per share – if the offer had been accepted, all shareholders would have turned in their Sun Micro shares for that amount. However, no one out there has offered to buy BearingPoint, so BearingPoint is selling off pieces of its businesses to satisfy creditors and hopes to emerge from bankruptcy after reorganization.
Whether your stocks will be worthless or go up will depend on how well BearingPoint can reorganize and run their business after emerging from bankruptcy.
Episode 25 – Company vs. Stock