: Major exchanges like the NYSE or Nasdaq often delist companies that file for bankruptcy.
: Usually receive nothing unless all higher-tier creditors are paid in full. Chapter 7 vs. Chapter 11 buying stock in bankrupt companies
: Investors with hybrid equity-debt holdings. : Major exchanges like the NYSE or Nasdaq
Bankruptcy courts follow an "absolute priority rule" when distributing remaining assets. Common stockholders are at the bottom of this hierarchy: : Banks or lenders with collateral. Unsecured Creditors : Bondholders, suppliers, and employees. buying stock in bankrupt companies