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Saturday, February 27, 2021 11:27:07 AM
More importantly, it can be hard to get research and information on the prospects for companies that enter bankruptcy. Recall that stocks listed on OTCBB/Pink Sheets have no public financial reporting requirements. Consequently, investors who choose to own bankrupt companies are essentially on their own. Investing in bankrupt companies is truly speculative and should only be done rarely (if ever), unless the investor is a specialist in researching and investing in financially distressed companies. And even for those who do venture down this path, it should be done with a small portion of the total portfolio, with an acknowledgement of the possibility for a total loss.
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