City investing company liquidating trust stock

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Thus, while the units were ignored by most potential buyers, they sold in high volume at approximately , or substantially below underlying value.The shares of City Investing Liquidating Trust traded initially at depressed levels for a number of additional reasons.Companies in liquidation are the antithesis of the type of investment they want to make.

The remaining assets were put into a newly formed entity called City Investing Liquidating Trust, which became a wonderful investment opportunity.Some of the most attractive corporate liquidations in the past decade have involved the breakup of conglomerates and investment companies.Most equity investors prefer (or are effectively required) to hold shares in ongoing businesses. Market Inefficiencies: Investing in Corporate Liquidations (Chapter 10)Some troubled companies, lacking viable alternatives, voluntarily liquidate in order to preempt a total wipeout of shareholders’ investments.Other, more interesting corporate liquidations are motivated by tax considerations, persistent stock market undervaluation, or the desire to escape the grasp of a corporate raider.

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