Sorrento Therapeutics Inc (SRNE)

[Brandywhitneylady]

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Read this before you try to make a quick profit from the stock of a company in bankruptcy.

When a company files for Chapter 11 bankruptcy protection, it doesn't mean that it is going out of business (that's Chapter 7). Rather, Chapter 11 is used by companies that feel their operations can continue profitably but after a restructuring to get its debts under control.

In general, when a company files for Chapter 11 protection, its stock price plummets and a "Q" is added to its stock symbol to clearly indicate that the company is in bankruptcy proceedings. So, what happens to the company's stock when it exits bankruptcy protection?

Last in line
Unfortunately, in the event of a bankruptcy restructuring, common shareholders are last in line when it comes to claiming a company's assets.

Thank you Idiot Ji.