It was nice of the market to provide those who don't understand these things with a brand new fresh example to follow for learning purposes:  CIT.  I don't intend to follow this miserable stock closely, but those unfamiliar with bankruptcy can watch as:  1) The stock is delisted and assigned a new trading symbol (which always happens, despite Norris's peculiar assertion that "The regulators promptly forced a change in name and ticker symbol [for GM], hoping that would clear up the confusion"); 2) The old CIT stock opens up for trading under its new symbol; and 3) That "old" stock continues to trade.

 

It has already been announced that "CIT's move will wipe out current holders of its common and preferred stock."  We'll see how effectively that quells those who always jump in ready to "double down" and buy up the shares at the "fire sale".  In the usual procedure, the company itself will soon announce the worthlessness of its common stock, and that will be reiterated when the new symbol is announced.  In a prepackaged bankruptcy such as this, there is virtually no reason to disbelieve the disclaimer.

Maybe CIT will prove different than the past examples I cited, but I doubt it.