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bankruptcy
Definition
A proceeding in a federal court in which an insolvent debtor's assets are liquidated and the debtor is relieved of further liability. Chapter 7 of the Bankruptcy Reform Act deals with liquidation, while Chapter 11 deals with reorganization.
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Identifying and Profiting off Companies Emerging from BankruptcyOnce a company emerges from bankruptcy, holders of the company's debt usually don't get paid off in cash (the company usually doesn't have much cash), but rather mostly newly issued bonds or common st ... Read more
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