Finalized means finalized. Right now, the music is going on, but most everyone knows that there are few chairs left, and a lot of people playing. Yes, so when the music stops, players will suddenly learn that there are no chairs to sit on. They fall on their —. They lose all their money. So no one in their right mind would ever pay 50x market cap for an IPO.
The government will wait until the auto industry, the economy and especially GM has began to be profitable, is stable and can remain an ongoing concern. More Video. We also perform and report on financial investigations to help protect the public interest. Read More. Read More…. Separating wheat from chaff, fact from fiction, relevant from ephemeral is part of that due diligence and research stuff investors get lectured about all the time.
On the other hand this bunch of readers may have a valid point. Sure, they were the same company once Meanwhile, as always, we're interested in what readers have to say Skip Navigation.
First element, GM's unusual bankruptcy Since we all want more readers, religiously sticking stock tickers into stories has become. More Editorial Thoughts If it's traded on a market, you can buy it. I wouldn't, though. It's worthless and the price only fluctuates from the daytraders. When GM emerges from this, these shares will be cancelled, and new stock will be issued in the new company. Response by poster: what do you mean When GM emerges from these shares will be cancelled?
Of course you can, it's a pink sheet Not sure what the incentive to buy is, I don't know the business plan. Will this company pay dividends after bankruptcy auctions?
It was formerly known as General Motors, but it sold the rights to the name, along with most of its other assets, to a new entity now known as "General Motors Company. As for buying stock in MTLQQ, their web site says : Management continues to remind investors of its strong belief that there will be no value for the common stockholders in the bankruptcy liquidation process, even under the most optimistic of scenarios.
Stockholders of a company in chapter 11 generally receive value only if all claims of the company's secured and unsecured creditors are fully satisfied. In this case, management strongly believes all such claims will not be fully satisfied, leading to its conclusion that the common stock will have no value.
No profit, no dividend. Can't see it as being anything but money down a hole. So it's better to call it the bankruptcy estate of the former company.
But G. From the same article: The new G. So no, you can't buy a share of the 'new' GM. It's a coinflip whether there will be any residual value in the liquidation. Investing should be taken with known risks, not throwing money at something and hoping it works. Stay away.
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