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Stocks
If the company's stock is publicly traded, a Chapter 11 filing generally causes
it to be delisted from its primary stock exchange if it was listed on the New
York Stock Exchange, the American Stock Exchange, or the NASDAQ. On the NASDAQ
the identifying fifth letter "Q" at the end of a stock symbol indicates the
company is in bankruptcy (formerly the "Q" was placed in front of the
pre-existing stock symbol; a celebrated example was Penn Central, whose symbol
was originally "PC" and became "QPC" after the company filed Chapter 11 in
1970). Many stocks that are de-listed quickly resume listing as over the counter
(OTC) stocks. However, once a publicly traded company emerges from Chapter 11,
the stock is typically nullified (by the order of the bankruptcy court)
rendering the OTC shares worthless.
Individuals may also file Chapter 11, but due to the complexity and expense of
the proceeding, this option is rarely chosen by debtors who are eligible for
Chapter 7 or Chapter 13 relief.
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