Amy Lynch cautions on “big bet” secondary offerings (MarketWatch)

A secondary offering from a company that has declared Chapter 11 bankruptcy needs to have air tight disclosures that explain it’s no safe bet for investors. FrontLine’s Founder and President, Amy Lynch, comments that the offering documents for the proposed Hertz Global Holdings Inc. stock sale need to spell out that any money invested could be a total loss. Pandemic related speculative type investing could be on the rise and other similar offerings would require enhanced disclosures explaining the elevated risks to investors. See MarketWatch, “Bankrupt Hertz gets approval to sell up to $1 billion in stock — but experts expect equity to be wiped out“