Introducing myself with a question

Discussion in 'Journals' started by Timeinx, Mar 19, 2011.

  1. Timeinx



    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?