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I own a few hundred shares of (AHM) american home mortgage and i only bought it a few days ago thinking that it was as low as it could get and now they are talking about bankruptcy, I am wondering what will happen to my shares? Will I ever be re-imbursed if the company comes out of bankruptcy?
if they come out of bankruptcy will i be able to make a profit over the next years if the company takes off again an has no debts left?
Will I be able to trade my shares like normal if they come out of bankruptcy? Is it likely that I can still make a profit if they go bankrupt pay of the creditors and the business takes off again?
Day trading


Bankrupt stocks are a write-off. You can only hope they will try use bankruptcy protection methods to prevent a total collapse, but the way the mortgage industry is looking right now, I would say the chances of being bailed out by a buyout firm are slim. Just hope they won't fold.

What most companies do when they come out of bankruptcy is restructure their entire share system. Its really hard to say whether or not you are still going to get a piece of the new pie although more often than not you don't. These new shares can be traded normally on the market.

Read up on the history of companies like Delta Airlines and Air Canada. They will give two different scenarios of how companies emerge out of bankruptcy.

In other words, are there restrictions on short selling an IPO on its first day?
Day trading


Inorder to sell short and company has to have an establish upward momentum in there trading and stock price history. Or no broker will lend you the stock, allso to be able to short a stock, you usually need to borrow it from an institution such as your brokerage firm. For them to lend it to you, they need an inventory of this stock. Odd's are they wont have it on an IPO's first trading day.
Is it IPO date is mostly for insider trading, then the following next day is the Actual real day which everyone can trade online ? a company go for public usually have two days correct ?

example website shown IPO for " bidu " is 8/4/05 , but the price history shown the first day trading starting on 8/5/05

please help

Day trading


As you say, there cannot be 2 dates. There will be just one starting day when the IPO lists in the stock exchanges and is available for trading. There is no insider trading related to IPO's. But yes, preferrence can be given for insiders like the employees, promorters for the allotment of the IPO.

You got to be clear on a few dates related to IPO's.

IPO Subscription begin date: The data when you can put in an application for buying the shares offered.

IPO Subscription end date: Last date of acceptance of applications for buying the shares as part of IPO.

IPO Allotment date: The date when the company offering the shares declares the names of the poeple who have been alloted shares that can be traded at a later date when the IPO lists on the stock exchange.

IPO Listing Date: The date when the IPO lists on the stock exchange, so that it can be traded. At this time, it can be traded by any one.