Buying bankrupt stock refers to the practice of purchasing shares of a company that has filed for bankruptcy or is in the process of doing so. It can be a risky but potentially rewarding investment strategy, as the stock prices of bankrupt companies are often very low. If the company is able to successfully reorganize and emerge from bankruptcy, its stock price may rebound significantly, resulting in substantial gains for investors.
There are a number of reasons why investors might consider buying bankrupt stock. First, it can be a way to acquire shares of a company at a very low price. Second, if the company is able to successfully reorganize, investors could see a significant return on their investment. Third, buying bankrupt stock can be a way to support a company that you believe in and want to see succeed.