Let’s say I buy 100 shares of GM common stock today at say $2.75 per share.
Then, say in January, GM declares chapter 11 bankruptcy.
What happens to my shares of common stock? Do they become worthless? Do they survive somehow?
During a bankruptcy, common stockholders get paid last, if there is anything left. There won’t be. The risk is built into the share price, that’s why it’s so cheap.
Grandpa
