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Equity in the old GM got wiped out. It's more than a practicality for you if you held shares in the old company -- or your retirement fund held shares.
by bpodgursky 7y ago
Equity in the old GM got wiped out. It's more than a practicality for you if you held shares in the old company -- or your retirement fund held shares.
- coliveira 7y agoShareholders come and go. This makes little difference for the company.
- bpodgursky 7y agoThis is like calling a heart transplant an everyday affair. It's deeply incorrect. Corporate reorganizations under bankrupcy law do happen, but they are rare, newsworthy, and very disruptive to workers (at a minimum, their pension and health benefits are renegotiated). Shareholders being wiped out is not normal, and retirement funds -- or really, the stock market at all -- would not work if it was.