***ALERT***YBTVQ-Trading"Cum Dividend",Look:
Transitioning YBTV-Q to YBTV-V to YBTV - Stock Dividend, (Cum Dividend- Rights) “Do Not Sell”! News coming!
Press Release due thisFriday will explain everything in great detail.
At least hold until Friday LONGS! This could be HUGE!!!!
My Aunt is a Securities Lawyer with an “Ear to the Wall” so to speak about the ongoing YBTV bankruptcy proceedings. Apparently, the court is going to allow the New Young Broadcasting Co. to bring forth the common shareholders via a special dividend (Possibly a r/s scenario) into the New Young Broadcasting Co.
This step will involved a few technicalities concerning the ticker symbol, reverse split of some sort, and RIGHTS (Cum Dividend)
What Does Cum Dividend Mean?
When a buyer of a security is entitled to receive a dividend that has been declared, but not paid.
Investopedia explains Cum Dividend
Cum dividend means "with dividend." A stock trades cum-dividend up until the ex-dividend date. On or after this point, the stock trades without its dividend rights.
If the company does come out of bankruptcy, there may be two different types of common stock, with different ticker symbols, trading for the same company. One is the old common stock (the stock that was on the market when the company went into bankruptcy), and the second is the new common stock that the company issued as part of its reorganization plan. If the old common stock is traded on the OTCBB or on the Pink Sheets, it will have a five-letter ticker symbol that ends in "Q," indicating that the stock was involved with bankruptcy proceedings. The ticker symbol for the new common stock will not end in "Q". Sometimes the new stock may not have been issued by the company, although it has been authorized. In that situation, the stock is said to be trading "when issued," which is shorthand for "when, as, and if issued." The ticker symbol of stock that is trading "when issued" will end with a "V". Once the company actually issues the newly authorized stock, the "V" will no longer appear at the end of the ticker symbol.
The last major USA bankruptcy in which common holders were not 100% wiped out was
that of Texaco in the late 1980s. It sought court protection from huge lawsuits under
some complex contracts, and those suits were resolved by the court, so the common
shareholders remained in place.
In order for common stock to not be cancelled from a bankruptcy, there must be net
assets left over after the claims of all higher-priority claimants are satisfied, at 100 cents
on the dollar! This is extremely rare. If the bankrupt company could have made good on
its obligations, it likely would not have needed to declare bankruptcy. The way the senior
claims are satisfied is NOT in cash (the company does not have enough!), but by issuing
paper called new common stock.
