Will I lose my shares in GM when they split into two companies?

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fennekus

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The preparations include looking at a so-called 363 sale, a reference to a section of the Chapter 11 bankruptcy code that would help create a new automaker from the assets and brands of GM, boosting the company’s survival chances. Will the shares "transfer" to the new company?
 
No. Let me describe the general scenario of what happens when a company is split. Assume you are a shareholder of a company A. Now, at a certain date, the company is split into two companies: Company X and Company Y. If you hold the shares of Company A on the record date, you will lose your shares of Company A. In its place, you will get shares of Company X and Company Y. Company A will decide in which proportion you will get the shares of Company X and Company Y.
 
Most commonly you'll likely end up with a combination of new company and GM shares.
 
If you're smart, you'll just sell them now. Normally, when a company goes bankrupt, the common shareholders get wiped out and new stock is issued when they emerge.
 
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