The type of filing determines the fate of the company and its shares:
: Major exchanges like the NYSE or Nasdaq often delist companies that file for bankruptcy. buying stock in bankrupt companies
: Usually receive nothing unless all higher-tier creditors are paid in full. Chapter 7 vs. Chapter 11 The type of filing determines the fate of
: Some brokerages, such as Fidelity or Public , may restrict trading in these stocks or require special permissions due to volatility and low liquidity. The "Waterfall" of Payouts such as Fidelity or Public