I was wondering if I could buy stock in a company that has recently filed chapter 11 (circuit city)? I don’t know if once you file chapter 11 is the market closed or what? Thanks
Just answered this in detail here.
http://answers.yahoo.com/question/index?qid=20081110081058AAP5iUu&r=w#BaN_M2D0AnhGUqjJm65y
Sure you can buy the stock. Just keep in mind that the true value of the equity is zero. So anything above zero is an overpriced stock.
There will be people who will trade this for prob a year (penny stock buyers). The key is to find a greater fool to sell to at a high price.
See Greater Fool Theory
http://en.wikipedia.org/wiki/Greater_fool_theory
Also keep in mind that the symbol will prob change tomorrow and moved to the pink sheets. I would avoid buying it.
