Wall Street as an indicator of value

Lehman Brothers, bankrupt and worthless, has seen its stock price soar 200% recently, giving it an imaginary capitalization of $103 million. I haven’t checked General Motors (old) stock recently but last time I did it too had a make-believe value of hundreds of millions. I understand why someone would sell this worthless paper: the question is, who’s buying?

2 Comments

Filed under Uncategorized

2 responses to “Wall Street as an indicator of value

  1. OG2

    Happens all the time in bankruptcy.

  2. ilene9

    I think this article begins to explain why and how the stocks are being pumped up:

    http://www.philstockworld.com/2009/08/30/more-on-the-massive-trading-volumes-in-troubled-financial-stocks/

    Ilene