When Bryan Quevedo received his U.S. government stimulus check last month, he invested $1,000 in the stock of bankrupt car rental company Hertz Global Holdings Inc .
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It is a trade that goes against Wall Street norms and is not for the faint-hearted. Hertz has warned that its bankruptcy process could render its shares worthless. Investors are betting on how high they can push the shares and are risking big losses if they can’t quickly flip them to someone else. Robinhood did not respond to a request for comment on the surge of trading of bankruptcy stocks on its platform.
Hertz itself has noticed. It launched an effort this week to sell $500 million worth of its stock in the open market, a remarkable move for a company in bankruptcy.
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