can we still buy in gm share from pinksheets?
Answers
989 points
rvilmur answered 4 months ago …
Yes you can if your broker allows trading in bankrupt stocks. But I would think that you would be throwing your money away. A large majority of companies coming out of bankruptcy either completely zero out the old stock or severely dilute the old stock (huge reverse split). This is a gamble that you should not take.
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2082 points
alanj answered 4 months ago …
Before purchasing stocks of bankrupt companies I would read this report at the following link. At least the first 2 sections and table 3. Out of 154 firms used in their research 93 where totally wiped out. 14 had positive return. And the average of the remaining 44 firms lost about 70% for the stock holders. http://www.westga.edu/~bquest/2001/penny.htm
If you are interested in GM stock I'd wait until they come out of bankruptcy before buying their stock. And make sure it is the new shares that will be issued to GM after coming out of bankruptcy.
