SEC Issues Investor Bulletin Regarding Public Company Bankruptcy

The SEC Office of Investor Education and Advocacy issued an investor bulletin, titled "Bankruptcy for a Public Company," intended to help investors understand what happens when a publicly traded company declares bankruptcy. The investor bulletin explains that, regardless of the type of bankruptcy filed by a company under Chapter 7 or Chapter 11, any common stock in that bankrupt company is likely to be worthless, since the common stock is "the last in line to receive what's available to be distributed in a bankruptcy proceeding."

See: SEC Investor Bulletin.