Hong Yuan Holding Group (HGYN): When a company files for chapter 11 bank...

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Tuesday, 02/11/2014 11:14:59 AM

Tuesday, February 11, 2014 11:14:59 AM

When a company files for chapter 11 bankruptcy, nothing happens to the stock, specifically. Chapter 11 is simply a reorganization of the company to allow it time to develop a plan to become financially sound. Its goal is still to proceed as an ongoing entity. However, this is not necessarily a good sign so the stock may decrease in value as a result.

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