sunflower19
2022-06-23
thanks 😊//@koolgal:

Day 9 - The last day of Education covers Specific Risks in relation to Listed US companies.

Key Takeaways 

There are 4 types of risks

1) Unexpected suspension of stocks

a) Important news announcement

b) Too volatile - suspend for 5 minutes to allow traders to cool off

c) SEC suspension and possible revocation of listing. Eg is Luckin Coffee

2) Delisting risk of listed companies

a) Direct delisting - no longer listed and shares become "waste paper"

b) OTC or Pink Sheets - shares can still be traded but not so liquid and no information on company.  Eg DiDi's recent delisting

3) Bankruptcy Risk

a) Chapter 7 - asset liquidation.  Investors will probably get nothing

b) Chapter 11 - debt restructuring.  Company can still continue to operate

4) Privatisation - Eg Twitter.  Caution on short sellers - shares silently liquidated

A Huge Thank You to @Tiger_Academy for these 9 days of Education. I have learnt so much from you and very grateful for your time and effort in compiling the lessons. 

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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