Why is Washington Mutual still active in stock market?
(After Washington Mutual has been closed for over a year, its stocks (WAMUQ) can still be traded in the stock market and its price has been shooting up to more than 3 times higher over the past 2 months. Why can a dead company’s stocks be alive? Why is it so active in the market now? And, should I hold them a bit longer for another price jump?)
Answer :
The stock is stock in Washington Mutual CORPORATION. This used to own Washington Mutual BANK and some other businesses. The BANK was taken over by the FDIC and sold to Chase and ceased to exist as a separate bank. This had no effect on the CORPORATION’s status as an independent corporation. The CORPORATION still has it’s debts from it’s mortgage subsidiary and is in bankruptcy.
Posted: July 26th, 2010 under US Stock Market.
Tags: Washington Mutual, what active in stock market