Hello, I just joined today when my mind came up with a thought I wish I had an answer to. Having traded often within the past twenty five years, seeing trading costs go from $30.00 to $3.00 (per trade), and numerous losses among some spectacular feats... I have this perplexing question: What determines whether a company should go bankrupt and declare stock worthless, only to emerge as a new company making unbelievable profits? Many companies have gone this route, only a few hang around to reward losing stockholders who keep the faith. Could it be that the legal system allows this? If so, then shouldn't all companies engage in this practice? Thanks......