Almost a year after it filed for bankruptcy, the value of Lehman Brothers shares has soared amid a surge in trading activity.
Other bankrupt companies – where the value of shares is usually close to zero because equity investors are compensated only after all creditors have been repaid – have also seen a frenzy of trading in the last few days.
“People lost so much money last year and they are so desperate to recoup their losses, that they are willing to invest in anything,” said Brad Golding, portfolio manager of CRC Financials Opportunity hedge fund in the Cayman Islands. “Everyone wants a lottery ticket.”
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