/biz/ - Business & Finance

https://www.reddit.com/r/Superstonk/comments/134nsz4/i_can_get_used_to_such_numbers_fudelity_havin/

>>54774719
>muh chapter 11
Repostan:The problem here is that you just do not understand how BK works. We will use Hertz as an. example as it was one of the very few occasions when the original stockholders got SOMETHING, although very little.

First, when a company declares BK the stock is DELISTED FROM ALL EXCHANGES. The exchanges don't trade BK stock. Shorts are excused from closing the transaction, as the stock is by definition worthless. THERE IS NO SQUEEZE BECAUSE THE SHORT SELLERS DON'T HAVE TO RETURN WORTHLESS STOCK. Sooner or later, the broker will release all funds to the short seller.

Then, the stock ticker symbol is changed. Hertz was changed from HTZ to HTZGQ. Now all old stockholders own shares in HTZGQ. THEN A NEW COMPANY IS FORMED. With Hertz, it was HTZ. All the old stockholders own NO SHARES OF HTZ. HTZGQ (old HTZ) will never again trade on an exchange although it can trade on pink sheets (that's what the "Q" means). HTZ can be (and was) listed with an exchange and traded.

Then, HTZGQ does a Section 363 bankruptcy sale of the assets to HTZ. This transfers the assets free of any liens to HTZ. HTZ pays for these assets by selling stock. The money generated in HTZGQ from selling stock in HTZ is distributed to the creditors of HTZGQ. Remember, that HTZGQ was once HTZ and was the original Hertz. (New) HTZ then discovers that it owns thousands of slightly used cars in the hottest used car market ever and the price then soars. This doesn't affect the original stockholders in Hertz because HTZGQ sold those cars to HTZ for 10 cents on the dollar. HTZ soars but the original stockholders own HTZGQ not HTZ. HTZGQ of course is worth pennies.

As a matter of fact, the holders of HTZGQ got $1.46 plus 1/20 share of HTZ for every share of HTZGQ for the best BK result of the century.

Also, it's hilarious how quickly they've given up on the MOASS thesis. At least they know once the stock is delisted that pretty much kills any chance of a short squeeze.

>>54492426
yes

>>54431226
People are too retarded to think of NFTs as anything more than a jpeg. Even funnier is all those nfts basically give you full rights to the jpeg in question and court would probably side with the holder
>contracts that say you own this land? Fair and just
>digital contract that says you own anything? UH COPY AND SAVE XD
I would love to invest in NFTs because a tokenized economy is coming but I just don't know how. People are dumb.

>>54263703

>>54173614

>rapidfire babeposter losing his shit again

>>54133637
>good buy
>good bye
indeed