When GM declared bankruptcy what happened to their shares of

When GM declared bankruptcy what happened to their shares of common stock? Could you purchase shares of GM stock when they were in bankruptcy? What was their stock value prior to declaring bankruptcy and what is their stock trading at now that they are out of bankruptcy?

Solution

GM declared bankruptcy or had filed for government-assisted Chapter 11 bankruptcy protection on June 1, 2009.

When a company files for bankruptcy, it generally happens that it is not been able to fulfill the lisitng standards of major stock exchanges and thus its shares are generally delisted from the stock exchange on which it is listed.

However, shares of such company can be traded either on the OTCBB or the pink sheets.

Same happened with GM. When GM declared bankruptcy its shares of common stock were delisted or removed from the Dow Jones Industrial Average.

However, GM stock was still trading but now at the OTCBB or pink sheets.

As GM stock was trading at the OTCBB or pink sheets when it was in bankruptcy, one can purchase the shares of GM stock when they were in bankruptcy.

GM filed for bankruptcy on June 1, 2009. Prior to their declaring for bankruptcy, the stock of GM (May 29, 2009) was trading at $1.12 per share.

At present, when GM was out of bankruptcy, its stock is trading at $29.42 per share.