How does a profitable company go bankrupt?
Jan Meriss Alfonso Assistant at Ascent Law LLC How Does a Profitable Company Go Bankrupt? Investing in a profitable company Investing in a company that goes bankrupt can be a risky endeavor, but it can also be a profitable one. There are a few ways to make this possible. The first is to watch for bankruptcy announcements. When a company is declared bankrupt, it must submit a plan for financial recovery to the court. As long as the plan is approved, it is possible for the company to reorganize and make a profit. About 10-15% of these companies reorganize successfully. Another way to invest in a company that is about to go bankrupt is by buying shares in the company. These stocks will likely be discounted significantly, giving investors a great opportunity to make a significant profit. The company may also be able to restart trading on major exchanges once the bankruptcy is over. While there are a number of reasons to invest in a company that is about to go bankrupt, it is best to ...