Although I don't disagree that the common shares (LEHMQ) may become worthless in bankruptcy, it's not always the case. In some Chapter 11 proceedings, the common shareholders receive a cash payment (Coleco, for example, paid about 20c a share back in the day), new shares (usually amounting to a small percentage of the float as the unsecured and note creditors get the majority), or are left in tact (very rare, usually this happens when the company does not issue new shares after the bankruptcy and is just an empty shell, then they can sell it as a clean shell with shareholders).
However, the point that's most important is that buyers of the common are basically doing a long shot, 250:1 bet. I don't see why someone would pay 10c for a common share when they can get a preferred K, L, M, or N for the same price. The M shares, because nobody knows the symbol (LHHMQ) went for 1-3 cents today. Each K, L, M, and N gives you a claim of $25 plus interest ranked above the common and regular preferred shares. You're still subordinate to senior creditors though.
DISCLAIMER: I am a dirty, rotten penny investor. I am not compensated by any stock. I've asked them to pay me, they refuse. I buy stock on the open market. I sell it there. I like money. I am greedy. I am under the care of a psychiatrist.
