Why bankrupt companies like Herz and JC Penny are still allowed to be in stock market? Is there anyChance that their shares go up in future?

4 Answers

  • kswck2
    Lv 7
    4 weeks ago

    They would be traded on the Pink Sheets, until they divest of their assets or come out of bankruptcy. I believe Sears is being traded there now. 

  • 4 weeks ago

    JCP has faced financial ruin in the past and always managed to come back. But now they are in the age of ecommerce and have a real estate problem that they can't afford to improve. Most of their stores are tied to dying shopping malls. I would pass on JCP. Hertz is a long shot, but I would think has more chance of survival when the airline and travel industry rebound. 

    If you want cheap stock that you can make money off of in the future buy Trivago, MGM Resorts,  or AMC Entertainment Holdings. 

  • Steve
    Lv 6
    4 weeks ago

    Their market value reflects the fact that theyve gone bankrupt. Theyre not dead (yet?). They are still worth something. Maybe someone will come along, try to buy the franchise and right the ship. Maybe they right the ship on their own. Who knows? You buy the risk at a discount with hopes of a good return. Sure, there is a chance that their shares go back up. How good a chance is any ones guess. 

  • 4 weeks ago

    Yes,they may go up, but they could also close completely.  That's the chance you take when you invest in companies that are in bankruptcy.  They are still in the stock market, because while they are reorganizing and restructuring their debt, filing for bankruptcy offers them temporary protection from creditors.  It all depends on if the people they owe money to, will accept less, or agree to wait longer to get it.

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