Hertz stock skyrockets after company goes bankrupt : Planet Money Rental car giant Hertz declared bankruptcy last month, which should have made their stock worthless. So how come people keep buying it? | Subscribe to our weekly newsletter here.

Owner Of A Broken Hertz

Owner Of A Broken Hertz

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Cindy Ord/Getty Images
NEW YORK, NEW YORK - MAY 23: An exterior view of Hertz Car Rental on May 23, 2020 in New York City. (Photo by Cindy Ord/Getty Images)
Cindy Ord/Getty Images

Sometimes bankruptcy means a company is sold for parts, and disappears forever. But other times, they just reorganize: They shed some debt, come back slimmer and stronger. GM's been through it. Delta too. And in both cases, the company's stock became worthless. That's what almost always happens.

Which is what makes the recent case of Hertz so interesting. Hertz is in bankruptcy, but for some weird reason, people keep buying Hertz stock — even though the company itself is warning people that its stock will almost certainly be wiped out within the year.

Today on the show, we take you inside the Hertz bankruptcy — how it happened, how they're trying to get out of this mess, and how the gamble of a lifetime paid off (at least for one person).

Music: "Break Glass," "Master Chi," and "Fluting Me Softly."

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