FINRA Changes 'Old GM' (GMGMQ) Ticker To (MTLQQ), To Resume Trading Tomorrow
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After halting shares of the 'old GM' (OTC: GMGMQ), now known as Motors Liquidation Company, on Friday, FINRA has issued an investor alert noting that they are changing the stock ticker for 'old GM' to (OTC: MTLQQ) and warned investors against investing in bankrupt companies, or those trading with a 'Q'.
Commencing July 15, 2009, trading in Motors Liquidation Company common stock will resume and the security will begin trading under the symbol 'MTLQQ'.
FINRA said they halted the stock on their belief there was widespread misunderstanding by investors that stock in the "old" General Motors Corporation (now known as Motors Liquidation Company) is related to the "new" General Motors Company (new GM), which currently has no publicly traded securities. FINRA said as recently as last Friday (July 10, 2009), newsletters and other promoters have touted the purchase of the stock.
Commenting on the risks of trading in securities of bankrupt companies, FINRA said, "When a company files for reorganization under the federal bankruptcy laws, investors are often tempted to buy or hold the company's common stock in anticipation that the company that emerges from bankruptcy will be profitable. The reality is, however, that when companies emerge from bankruptcy, the common stock of the "old" company is usually worthless. In most instances, the company's plan of reorganization will cancel the existing equity shares." FINRRA states, Investors should understand that buying common stock of companies in Chapter 11 bankruptcy is extremely risky and can lead to financial loss.
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