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Debt Relief – Insolvency – Bankruptcy Information » Insolvency » If a company is put in receivership, can its stock still be traded or is it frozen?

If a company is put in receivership, can its stock still be traded or is it frozen?

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2 Responses to "If a company is put in receivership, can its stock still be traded or is it frozen?"

  1. Len says:
    When a company is in receivership, it’s already been stripped of its freedom to operate in a public arena. A court-appointed entity is assigned to oversee all business related activity and the original business arrangement no longer exists. This is usually the precursor to liquidation dur to bankruptcy.

    Even if the company is about to enter into receivership, it would be a most foolish idea to even consider getting involved as a trader of its stock. It might help you to know that on many occasions, receivership results from a conspicuous lack of ethical procedures in the company’s operating history. This may be due to fraudulent activity pending court investigation. Thus, money invested will likely disappear due to the costs of litigation.

    Len

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