[MRM]

The problem is that although the company does not go under, the previous stock almost always gets declared worthless because the secured creditors take whatever money there is at cents on the dollar. That leaves nothing for the common stock holder. The company issues new stock in the company that emerges from bankruptcy. The new stock is what you want to buy.

Don't play with things like this unless you are a serious professional. Like blackjack, you might get lucky once in a while and make a bet that beats the pros, but the odds are heavily in the house's favor.