Filed under: Comfort Zone Investing
There are rumors that BP (BP) may declare bankruptcy. That way it can avoid some of the liabilities from the giant oil spill in the Gulf of Mexico. No one knows what BP will do, and it seems to be making a concerted effort to do the right thing, especially since the president of the United States has taken a personal interest. We can only hope for the best.
As investors, however, it's important to know how a bankruptcy works and how it affects stockholders of a company that goes through it. In a nutshell, you get screwed. Here's how.
The first thing to understand is that a company is a legal entity unto itself. While there is management to run it, the company, in the eyes of the law, is almost like a person, responsible for its actions. So think of it as a breathing, living being.
Continue reading Comfort Zone Investing: When a Company Goes Bankrupt
Comfort Zone Investing: When a Company Goes Bankrupt originally appeared on BloggingStocks on Sat, 19 Jun 2010 10:30:00 EST. Please see our terms for use of feeds.
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United States - Gulf of Mexico - Bankruptcy - Law - Oil spill
Full story at http://www.pheedcontent.com/click.phdo?i=e186597758cf4b411cb1b13fe169a2da
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